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 This amount can be of salary business, property sale or money withdrawn from bank.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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In today’s time, most transactions have become digital. There are very few people who keep cash. People like to pay online for every small and increased thing. But there are some people who like to keep cash. So can people keep cash in the house as much as you want or any limit has been fixed for this. The question arises in the minds of many people, how much cash it is legally right to keep in the house. And which limit can cause difficulties if there is more cash. Let us tell you complete information about this.

Is there a limit to keep a cash?

If we talk about the limit of keeping cash in the house, then there is no limit fixed for this. You can keep as much cash at home as you want. But some rules and precautions are necessary if you keep a large amount from the point of view of law. If you have more cash and it was not declared correctly with income or source.

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So it can raise questions under the Income Tax or Money Laundering Act. It is okay to keep cash in a little limit for home needs. But if you keep millions or crores of rupees in the house. Then it can be difficult.

What can be punished?

If the amount of cash kept in the house was not declared correctly according to the rules and laws. So legal action can be taken. The Income Tax Department can consider it as a hidden income and can investigate it. Apart from this, the police or income tax department can also interfere in the case of money laundering or suspected transactions.

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If you keep a lot of cash at home, then you have to give proof of having so much cash. If you give the correct evidence then no action will be taken. But if you are unable to give proof. So it may have to pay fine and tax. So there may also be a jail sentence in some cases.

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