Income Tax Raid: You must have heard about the Income Tax Department and ED raids on keeping excess cash at home. This may raise a question in your mind that how much maximum cash is a person allowed to keep in his house… Let’s know in this news today-
Income Tax Raid You must have heard about the Income Tax Department and ED raids on keeping excess cash in the house. This may raise a question in your mind that how much maximum cash is a person allowed to keep in his house. What action is taken against someone if a lot of cash is found in his house. Here we are going to tell you about this.
According to the Income Tax rules, there is no upper limit on keeping cash at home. You can keep as much cash as you want. However, if an investigating agency seizes it, you will have to prove its legitimate source. If the money is earned legally, no action will be taken against you.
It is necessary to pay income tax-
If you keep more cash at home, it is necessary to have its legitimate source and documents related to it. Income tax should also be paid according to your income. If the investigating agency catches you with more cash and you present valid evidence, then no action will be taken against you. If you are not aware of these rules, you may have to pay a heavy fine.
Fine is imposed for not telling the legitimate source-
If you are unable to tell the investigating agency the legitimate source of more cash caught at home, action can be taken against you. The Income Tax Department can charge a fine of up to 137% of the recovered cash amount. This means that you may have to pay 37% more than the recovered amount.
Keep these things in mind in cash transactions-
It is important to know the rules for large cash transactions. It is mandatory to show PAN card when withdrawing or depositing Rs 50,000 or more in the bank. Similarly, PAN and Aadhaar will have to be shown for cash purchases of more than Rs 2 lakh. Also, you will have to submit PAN and Aadhaar if you deposit more than Rs 20 lakh in cash in a bank account in a financial year. It is important to follow these rules.
