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Cash limit at home: 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 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, but we do not discuss it and that is how much cash can you keep at home? Know about it here-
What are the rules for carrying 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 some source for that amount. If ever the investigating agency interrogates you, you will have to tell the source. Apart from this, ITR declaration will also have to be shown. This means that if you have not earned money through ill-conceived means, no matter how much cash you have at home, you do not need to worry.
Action can be taken in these situations
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, information about this matter has been given to the investigating agency. Then the Income Tax Department checks how much tax you have paid. Meanwhile, if undeclared cash is found in your accounts, 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 thousand 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 has to pay TDS. However, this rule is only for those people who have not filed Income Tax Return (ITR) for 3 consecutive years.
– Those who have filed ITR have got some relief in this matter. Such people can withdraw cash up to Rs 1 crore from bank, post office or co-operative bank account in a financial year without paying TDS. In such a situation, if you withdraw more than Rs 1 crore cash from the bank in a year, then you will have to pay 2 percent TDS. If you have not filed ITR for the last three years, you will have to pay 2% TDS on transactions up to Rs 20 lakh and 5% TDS on transactions above Rs 1 crore.
– Transactions of more than Rs 1 lakh at a time through credit-debit cards can come under scrutiny. Apart from this, you cannot give more than Rs 2 lakh in cash to buy anything. If you want to do this then you will also have to show PAN and Aadhaar here.