look news india
How much legal money can you keep at home: In the age of digitization, most financial transactions are now done digitally. People, especially the youth, avoid carrying cash. On the other hand, there are many people who prefer to transact in cash. They also keep a large amount of cash at home. If you have white money i.e. hard-earned money, then you do not need to worry. But keeping too much cash at home can lead to income tax inquiries…
How much cash can be kept at home?
You can keep that much cash at home. There is no restriction on this. So the question is, can you get a notice from the Income Tax Department if you keep more cash than the prescribed limit at home? The answer is no. But if you have to face any action from the Income Tax Department, then you will have to tell what is the source of the money present at home?
Valid source of cash available at home and required documents should be submitted
According to the income tax rules, if there is any legitimate source of cash available in your house, then it is necessary to show its documents. If you have not earned money illegally, then you do not need to panic. You just need to tell where the cash came from and present its legal documents.
Heavy fine will be imposed for hiding information
If you fail to give an account of the cash you have, the Income Tax Department can impose a heavy penalty on you. According to the Income Tax rules after demonetization, if you have undeclared cash, you may have to pay up to 137 percent tax on that amount.
Cash, property to be seized in case of tax evasion
Government agencies including the Income Tax Department, Central Board of Direct Taxes (CBDT) and Enforcement Directorate (ED) keep an eye on people who hoard black money. If you have the details of the amount and property available in the ITR then there is no need to worry. But if tax has been evaded or incomplete tax has been paid and property and income have been concealed, then in that case income tax raids Under Section 132 of the Income Tax Act, these agencies can conduct raids and seize cash and illegal property. Home.
Some things should be kept in mind regarding cash
According to the rule, it is necessary to show PAN card while depositing Rs. 50000 at a time in the bank. While purchasing Rs. 2 lakh, payment cannot be made in cash. For this, you will have to compulsorily submit a copy of PAN card and Aadhar card.