How much cash can be kept at home, know how much the law has fixed?

The era is moving towards digitalization. From shopping to payment, it is starting to be online, but even today many people keep cash in homes and use it for transactions. Now many times reports of raids of Income Tax Department also come to light. In such a situation, it is bound to arise in the mind that how much cash can be kept legally at home. Let us know what the law says about this?

Is there any limit to keep cash?

The first important question is whether there is a limit to holding cash legally in the house? In response to this question, let us tell you that the Income Tax Deputment has not fixed any limit to keep cash in the house. Whether the amount is small or big, keeping cash is not illegal from anywhere. The condition is just such that there should be some valid source of income. If you have proved that the money kept in the house is the amount earned from your salary or business or is part of any legal transaction, then you can keep how big the amount is at home. Problems come when you are unable to prove what is the source of income.

What does the Income Tax Act say?

Sections 68 to 69B of the Income Tax Act mentions the rules related to cash and property-

Section 68: If there is any record in your passbook and cashbook, but you are not able to tell its source, then it will be considered uncured income.

Section 69: If you have a cash or any investment, but you are not able to give account of it, then it will be considered an undisclosed income.

Section 69B: If you have disproportionate assets or cash, but you are not telling its source, then you will be imposed tax and penalty.

If you could not tell the source …

During the investigation or raids, if a huge amount of cash was recovered from your house and you are not able to give the correct account of it, then the entire amount will be considered undisclosed income or undeclared income. in this situation

A huge tax can be levied on you.

The seized amount can be fined up to 78 percent.

If the department suspects tax evasion, a case can also be conducted.

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