Cash Limit IT Dept Rule: You can keep as much cash at home as you want. The only rule that has to be remembered is that you should have an account of each pie that what is the source of your income and whether you have paid tax or not.
Cash Limit Rule: There are many rules on cash possession and transactions in the country to remove problems like tax evasion or black money. A basic question is whether there is any limit on how much cash can be kept at home? Keeping cash at home depends on two things, your financial capability and your transactional habit.
If you keep a large amount of cash at home, then tell you here that there is no such rule that you can keep cash at home only within a limit. No rule forces you to keep cash within a limit. If you are able, you can keep as much cash at home as you want. The only rule that has to be remembered is that you should have an account of each pie that what is the source of your income and whether you have paid tax or not.
According to the income tax rules, you can keep any amount of cash at home. Just in case you get caught by the investigating agency for any reason, then you will have to prove its source. Along with this, ITR declaration will also have to be shown. If you are not able to do this then action can be taken against you. After demonetisation, the Income Tax had said that if undisclosed cash is found in your house, then up to 137% of the total recovered amount can be taxed.
But there is a limit on cash transactions, it is very important to know
- According to the rules of the Central Board of Direct Taxes, you have to show PAN card on cash deposits or withdrawals above Rs 50,000 at a time. If he deposits more than 20 lakh cash in a year, then he will have to show PAN and Aadhaar card. If not shown, a fine of up to 20 lakhs can be imposed.
- 2% TDS will have to be paid if more than 1 crore cash is withdrawn from the bank in a year.
- Cash transactions of more than 20 lakhs in a year can attract a fine. The purchase and sale of cash property of more than 30 lakhs can be investigated.
- Can’t pay more than 2 lakh in cash to buy anything. If you want to do this, you will have to show PAN and Aadhaar here too.
- Transaction above Rs 1 lakh at a time with credit-debit card can be investigated.
- An amount of more than 2 lakhs cannot be taken from a relative through cash in a day, this work will have to be done from the bank again. You cannot even take a loan above Rs 20,000 in cash from anyone else.
- You cannot donate more than 2,000 in cash.
