Income Tax Raid: You can keep as much cash as you want in your house, there will be no income tax raid, just know these rules
Income Tax Raid: In India, there is no fixed limit for keeping excess cash at home. But if a lot of cash is found in someone's house, what action is taken against him... Let us know this in this news below-
Breaking News, Digital Desk- In India, there is no set limit on keeping excess cash at home. However, if the Income Tax Department or ED suspects the source of the cash you have, they can conduct raids. What action is taken against someone if a lot of cash is found in his house. Let us know this in this news below-
According to the income tax rules, there is no limit on keeping cash at home. You can keep as much cash as you want in your house. However, if an investigating agency ever catches it, you will have to disclose its legitimate source. If you have earned that money in a legitimate way, then no action is taken against you.
It is necessary to pay income tax-
If you keep a large amount of cash at home, then you should have the valid source of that amount and the documents related to it. Your income tax should also be paid according to your income.
If you present this proof when the investigation agency catches a large amount of cash, then no action will be taken against you. It is necessary to know these rules, otherwise you may have to pay a heavy fine.
Penalty is imposed for not disclosing the legitimate source -
If a large amount of cash is found in your house and you do not disclose its legitimate source to the investigating agency, action can be taken against you.
For this, the Income Tax Department charges a penalty of up to 137 percent of the amount of cash recovered from your house. This means that you may have to pay 37 percent more than the amount recovered in cash from your house.
Keep these things in mind in cash transactions-
When you make large transactions in cash, it is important to know the rules. You have to show PAN card when depositing or withdrawing ₹ 50,000 or more at a time in the bank.
While making purchases, you cannot pay more than ₹ 2 lakh in cash; PAN and Aadhaar are required for this too.
Additionally, if you deposit more than ₹ 20 lakh in cash in your bank account in a financial year, you have to show your PAN and Aadhaar to the bank. These rules help prevent black money and maintain financial transparency.