Cash Limit At Home: You must have heard many times about raids by Income Tax Department and ED for keeping more than the limit cash at home. Amidst such incidents, the first question that comes to mind is how much cash can a person keep at home.
However, the limit of keeping your cash completely depends on your financial capacity and transaction habits. In this case, according to the income tax rules, you can keep any amount of cash at home, but complete accounting. with.
The government has not set any limit and rules for keeping cash at home, but if you keep cash, then the source should be known. So that if they get caught by the investigating agencies, ED or Income Tax, they can at least clear their source. If you are unable to clear the source while keeping a large amount of cash, then you will be fined up to 137% of the undisclosed cash amount.
There is no limit for keeping cash, but there is a limit for cash transactions.
According to the Central Board of Direct Taxes, up to ₹ 50,000 cash can be deposited into the bank account at a time, for which PAN card will have to be shown. If you deposit cash up to ₹ 20 lakh in a bank in a year, then both Aadhaar and PAN card are mandatory. Failure to do so may result in a fine of ₹20 lakh. Withdrawal of more than Rs 1 crore cash from the bank in a year may attract 2% TDS and fine for cash transactions of more than Rs 20 lakh.
If you buy or sell property worth more than Rs 30 lakh in cash, then it will be a subject of investigation. You may be interrogated. Goods worth more than Rs 2 lakh cannot be bought or sold in cash. Transactions of more than Rs 1 lakh through debit-credit cards will also come under scrutiny. You cannot take cash loan of more than Rs 2 lakh or loan of more than Rs 20,000 even from any close friend. Cash donation above Rs 2,000 is also a matter of investigation.