Cash Limit: So This Much is the Cash You Can Now keep at Home
- Posted on December 7, 2022
- By Akta Yadav
- 68 Views
The Cash You Can Now keep at Home: The Government of India has made several regulations regarding how much cash can be kept in one's possession and also regarding cash transactions to combat the issues of tax evasion and the prevalence of black money. The obvious question that follows is whether there are any restrictions on the amount of cash that can be kept at home. Your financial capacity and your pattern of transactional behavior will both influence whether you keep cash on hand. There are no restrictions on the amount of cash that can be kept in homes in terms of how much cash can be kept there. You are free to keep as much cash as you like at home. The only thing to keep in mind is that you should keep track of every penny you earn, as well as have proof of your income's source and whether you've paid your taxes or not. You are allowed to keep any amount of cash at home following income tax regulations. In the unlikely event that the investigating agency catches you, you will need to show where the information came from. ITR declaration will also need to be presented along with this. Action may be taken against you if you are unable to do so. Following the implementation of demonetization, the Income Tax stated that if undeclared cash was discovered in your home, up to 13.7 percent of the total amount recovered could be taxed. Under the Central Board of Direct Taxes' regulations, you are required to present your PAN card whenever you deposit cash or withdraw cash totaling more than Rs 50,000 at once. He must display your PAN and Aadhaar card if you deposit more than 20 lakh in cash in a single year. A fine of up to 20 lakhs can be imposed on you if you don't comply.
- If more than 1 crore in cash is withdrawn from the bank in a year, 2% TDS will need to be paid.
- A fine may apply for cash transactions totaling more than 20 lakhs in a calendar year. You can look into the buying and selling of cash assets worth more than 30 lakhs.
- Nothing can be purchased with more than Rs. 2 lakh in cash. You will also need to present your PAN and Aadhaar here if you want to do this.
- Investigations are possible for credit-debit card transactions totaling more than Rs 1 lakh at once.
- A relative cannot take more than Rs. 2 lakhs in cash in a single day; this task must be repeated through the bank.
- You are not permitted to borrow more than Rs 20,000 in cash from anyone else.
- A cash donation of more than $2,000 is prohibited.