New Guideline For Cash at Home: You can keep only so much cash in the house, know the rules immediately, otherwise…

Investigative agencies like Income Tax Department, ED, CBI have raided many places and recovered cash worth crores of rupees from people’s homes. In such a situation, the question arises that how much cash can a person keep in his house? How much cash can be kept in your house, so that there is no fear of any investigating agency.

Cash holding limit at home

According to the rules of the Income Tax Department, you can keep any amount of cash in your house, but if it is caught by the investigating agency, then you will have to tell its source.

If you have earned that money legally and you have all the documents for it and you have filed income tax return, then there is no need to fear. But if you are not able to tell the source then the agency will take action against you.

Cash rules

• Failure to disclose the source of the money kept in the house can lead to a fine of up to 137 percent.
• Cash transactions above Rs 20 lakh in a year can attract a penalty.
• According to the CBDT, it is necessary to provide PAN number for deposit or withdrawal of more than Rs 50,000 in one go.
• If a person deposits Rs 20 lakh or more in cash in a year, then he will have to give details of PAN and Aadhaar.
• Failure to provide PAN and Aadhaar details can attract a fine of up to Rs 20 lakh.
• Purchases cannot be made in cash more than Rs 2 lakh.
• PAN and Aadhaar details will be required for cash purchases above Rs 2 lakh.
• Any person can come under the radar of the investigating agency for the purchase and sale of cash assets of more than Rs 30 lakh.
• During the payment of credit-debit card, if a person makes a payment of more than Rs 1 lakh at a time, then there can be an investigation.
• An amount of more than Rs 2 lakh in cash cannot be taken from relatives in a day. Can be taken through bank.
• The limit for donating in cash is Rs 2,000.
• No person can take a loan of more than 20 thousand in cash from any other person.
• TDS will be levied on cash withdrawal of more than Rs 2 crore from the bank.