How much cash can you keep at home, know the rules… otherwise you may have to face Income Tax raid…

New Delhi:- Digital transactions have increased rapidly since the Corona period. Now a large population prefers to do online transactions. But even after this, all types of transactions are still done through cash only. At the same time, people who are not internet friendly also prefer to complete all their work through cash instead of online transactions. Because of this, people still keep a lot of cash at home. But to control problems like tax evasion and black money, the government has made many rules regarding cash. In such a situation, there is a question which comes to mind many times that how much cash can be kept in the house.

What are the rules for keeping cash?

According to Income Tax rules, no special rule or limit has been made in the matter of keeping cash at home. If you are financially capable then you can keep any amount of cash at home. But you must have a source for that money. If ever the investigating agency interrogates you, you will have to show the source. Besides, you will also have to show ITR declaration. This means that if you have not earned money illegally, then no matter how much cash you have at home, you do not need to worry.

Under what circumstances action can be taken

If you are not able to tell the investigating agency the source of the money, then it can be a big problem for you. In such a situation, this information is given to the investigating agency. Then the Income Tax Department checks how much tax you have paid. Meanwhile, if undeclared cash is found in the calculation, then action can be taken against you by the Income Tax Department. In such a situation, tax up to 137 percent of the undeclared amount can be charged from you.
What are the other rules regarding cash?

According to the Central Board of Direct Taxes, if you withdraw more than Rs 50,000 in cash at a time, you will have to show your PAN card. Under Section 194N of the Income Tax Act, if a person withdraws more than Rs 20 lakh in a financial year, he will have to pay TDS. However, this rule is only for those who have not filed income tax returns for 3 consecutive years. Those who have filed ITR get some relief in this matter.

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