HOW MUCH CASH YOU CAN KEEP AT HOME IN 2023

INTRODUCTION

If you have a habit of keeping most of the cash in your home, then it can also harm you a lot. Those who are businessmen, they often have to save some money at their home, even if they deposit it in the bank the next day. But some people have a lot of cash, and they keep it in their house, and later they get caught. If you do the same, then this article can prove to be useful for you. What is the limit the Income Tax Department fixed to keep cash at home?

As per the rules of the Income Tax Department

It may be known that in the last several months, assembly elections were held in the states, in which it was found that there was a lot of cash deposited in people’s homes. Cash amounting to crores of rupees is being recovered from the officers every day. In such a situation, the question arises that how much cash should the common man keep in his house, so that no action is taken against him.

Keep these things in mind

Transaction of more than Rs 20 lakh in cash in a financial year can attract a fine. It is necessary to give PAN number for depositing or withdrawing cash more than Rs 50,000 at a time

If a person deposits 20 lakh rupees in cash in 1 year, then he will have to give information about PAN (PAN) and Aadhaar (Aadhaar). Fine up to Rs 20 lakh may have to be paid for not giving information about PAN and Aadhaar

You cannot shop for more than Rs 2 lakh in cash. A copy of PAN and Aadhaar card will have to be given if purchases of more than Rs 2 lakh are made in cash

The person can come on the radar of the investigating agency on the purchase and sale of property worth more than Rs 30 lakh in cash.

At the time of payment of a Credit-Debit Card card, if a person pays an amount of more than Rs 1 lakh in one go, then an investigation can be done.

Can’t take cash more than Rs 2 lakh from your relatives in 1 day. This has to be done through the bank

The limit for donating in cash has been fixed at Rs 2,000.

No person can take a loan of more than 20 thousand in cash from another person.

You will have to pay TDS if you withdraw more than Rs 2 crore cash from the bank.

Source of cash

If you are caught by the investigating agency, then you will have to tell the source of the cash. If you have earned that money in the right way, then you must have its complete documents. Also, if his Income Tax Return is filled, then you do not need to panic. If you are unable to tell the source, then big investigative agencies like ED, CBI take action against you.

Fine

How much fine will you have to pay if you are caught with unaccounted cash at home? According to the Central Board of Direct Taxes (CBDT) in this regard, if you are unable to tell the source of money kept at home, then you may have to pay a fine of up to 137 percent.

Conclusion

In times of emergency, people rely only on cash. For this reason, they keep cash in their house only. Very few people know how much cash is right to keep at home. According to the rules, there is no limit to keeping cash at home. But it is necessary that whatever cash is available with you, you should have a complete account of it. Where did that cash come from and what is the source?

If you have a large amount of cash, then tax should be paid on it. With this, you should have all the documents related to tax payment, so that you can easily give any information related to cash when asked by the Income Tax Department. 

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