Keeping too much cash at home can lead to trouble. Is there any limit on keeping cash? Know when you may have to face fines and legal action.

In today's time, most of the transactions have become digital. There are very few people who keep cash. People like to make online payments for every small and big thing. But there are some people who like to keep cash. So, can people keep as much cash as they want at home, or is there any limit set for this? Now the question arises in the minds of many people about how much cash is legally correct to keep at home. And if there is more cash than the limit, then there can be problems. Let us tell you complete information about this.

Is there any limit on keeping cash? 

If we talk about the limit of keeping cash at home, then officially, there is no limit for this. You can keep as much cash as you want at home. But from the point of view of law, some rules and precautions are necessary for keeping a large amount. If you have a lot of cash and it has not been declared properly along with the income or source.

So this can raise questions under the Income Tax or Money Laundering law. It is okay to keep a small limit of cash for household needs. But if you keep lakhs or crores of rupees at home, then problems can arise. 

What could be the punishment? 

If the amount of cash kept at home is not declared properly as per the rules and laws, then legal action can be taken. The Income Tax Department can consider it as hidden income and can investigate it. Apart from this, the police or the Income Tax Department can also intervene in the case of money laundering or suspicious transactions.

If you keep a lot of cash at home, then you will have to give proof of having that much cash. If you provide the correct proof, then no action will be taken. But if you are unable to provide proof, then you may have to pay a penalty and tax. In some cases, there can be a jail sentence as well.