By Admin 
In today’s time, most transactions have been online. Almost every work is dealt with digital payment from filling electricity bills to mobile recharge. Despite this, the need for cash money is not completely exhausted. People consider it necessary to keep cash at home for marriage, medical emergency or everyday expenses. In such a situation, the biggest question arises that how much cash in the house is legally correct.
Is there a limit to keep cash in the house
The Income Tax Department has not made any fixed limit to keep cash in the house. That is, if you want, you can keep millions of rupees cash with you. The law does not refuse it. But a condition is very important here, you have to prove that this money has come from a legitimate way.
Source evidence is necessary
If you have a huge amount of cash and the Income Tax Department inquiry, then you have to tell its source. This amount can be of salary business, property sale or money withdrawn from bank. Evidence of this such as bank statement, ITR, salary slip or transaction receipts must be with you.
What does the law say?
According to Section 68 to 69B of the Income Tax Act, if you are unable to tell the source of any amount, then it is considered undisclosed income. In such cases, not only tax has to be paid but a fine of up to 78% can also be imposed.
When can you come in trouble?
- If the Income Tax Department gets big cash and you cannot give proof of it.
- Cash should not match the amount recorded in your ITR or account books.
- If you took a cash gift of more than Rs 2 lakh or used so much cash in the property purchase and sale, then it will be considered a violation of the rules.
Which transactions are on strict?
- PAN card is required on more than 50 thousand cash deposits or withdrawal in the bank
- In a financial year, both PAN and Aadhaar card have to be paid for depositing more than 20 lakh rupees.
- Property cash deal of more than Rs 30 lakh can be investigated.
- Payment of more than 1 lakh from credit card is also in the eyes of the Income Tax Department
This means that it is not illegal to keep cash at home in India. But if the amount is big, then it is very important to have a book. The correct documents and transparency act as a shield for you. Otherwise, there is a danger of tax and heavy fine in the case of undeclared income.
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