Cash Limit at Home: Nowadays it seems easy to keep cash at home, but if you do not follow the rules of Income Tax Department, it can be risky. During IT raids, news of crores of cash being recovered often becomes news, and the question arises: how much cash can you keep at home legally without any hassle? Let’s know its guidelines, so that you do not get into any trouble.
It is the time of digital payments
The trend of digital payments is increasing. Nowadays people prefer to make transactions through UPI, debit or credit cards. But still, some people use cash for big transactions. If you are also among them, then definitely understand the rules of cash limit and legal complications.
How much cash can I keep at home?
Surprisingly, the Income Tax Department has not set any specific limit for keeping cash at home. But there is one condition: you have to explain the source of that cash. If you fail to provide satisfactory documentation, you may face penalty, confirmation, and sometimes even arrest.
Be careful with unaccounted cash!
When a large amount of cash is found at home during IT raids, it is often unaccounted money. In such cases, the Income Tax Department takes strict action. If you cannot provide a valid source of cash, you may have to face problems like these:
• Confiscation of cash (confiscation)
• Heavy fine
• Legal action up to going to jail
Therefore, it is very important to keep a proper record of your income and transactions.
Withdrawal and Deposit Rules that you should know
1. PAN Card is necessary for big withdrawals:
If you withdraw more than ₹50,000 in cash at once, then you have to show PAN card.
2. Annual Cash Withdrawal Limit:
You can withdraw up to ₹20 lakh cash from your bank account in a year.
3. For depositing more than ₹2 lakh:
If you deposit more than ₹2 lakh in one go, then it is mandatory for you to provide both PAN and Aadhaar details.
If the income is legit then there is no need to worry
If your money is legally earned, then there is no need to worry. Always maintain a record of your transactions and be ready to explain the source of any large amount of cash. This will keep you compliant with the authorities and avoid unnecessary hassles.
