Income Tax Rule: No matter how much cash is kept in the house, income tax will not take action, know how!

PC: lokmat.news18

If more cash is kept in the house, the Income Tax Department and ED will raid. You must have heard about it. We often read and hear about such incidents in the news. At such a time, you must be thinking that how much cash a person is allowed to keep at home. Also, what action can be taken against someone for getting more cash in his house? Today we are going to know about this.

There is no limit on the amount of cash that can be kept at home as per the Income Tax rules. You can keep as much cash in your house as you want. However, if the investigating agency ever catches him, you will have to cite his valid source. If you have earned that money legally, then no action is taken against you. That is, you can keep any amount of cash at home. You just need to know what is its source. Documents will also have to be shown.

PC: mint

Have to pay income tax

If you keep a large amount of cash at home, you must have a valid source of it as well as relevant documents. Your income tax should also be paid according to your income. If you produce this evidence before the investigating agency after seizing the excess cash, no action can be taken against you. You must be aware of these rules. If you do not have information, you may also have to pay a heavy fine.

Penalty for failure to cite a valid source

If you do not tell the investigating agency about its legitimate source when you find a large amount of cash in the house, you can be prosecuted. For this, the Income Tax Department charges a fine of 137 percent of the cash seized from your house. That is, you will have to pay 37 percent more money for withdrawing cash from your home.

PC: Fortune India

Keep these things in mind in cash transactions

When you do big transactions with cash, then you should also know its rules. You will need to show your PAN card to withdraw or deposit Rs 50,000 or more at a time. At the same time, cash payments of more than 2 lahks cannot be made while making any purchase. For this, you will also have to show your PAN and Aadhaar. Also, if you deposit more than Rs 20 lakh cash in your bank account in a year, you will need to show your PAN and Aadhaar at the bank.