Income Tax: How much cash can you keep at home? You won't have to pay a single penny if there is a raid...

Most corruption happens in cash transactions. This is the reason why the Modi government is making all efforts to promote digital transactions along with fixing the limit of cash transactions. From depositing cash in the bank to payment in land purchases and mutual transactions, the limit of cash has been fixed. In such a situation, the question arises what is the limit of keeping cash at home? Do you know how much cash you can keep in cash at home?

Under the Income Tax Act, there is also a rule regarding keeping cash at home. In such a situation, every person needs to know what is the limit of keeping cash with oneself. If this rule is not followed, then the Income Tax Department officials can confiscate your money as well as impose penalties and interest. Therefore, everyone must know what is the limit of keeping cash at home under the Income Tax Act.

What is the limit for keeping cash?

According to the Income Tax law, you can keep any amount of money in your house. There is no legal restriction on this. The Income Tax Department has not set any limit for keeping cash. You can keep any amount of cash in your house, but its source should be valid. Also, it would be better if you include the amount of cash in the ITR so that if there is any inquiry about its source, you can give a clear answer.

Heavy penalty if the source is not valid

Sections 68 to 69B of Income Tax tell about those properties and income that cannot be disclosed. If any money is found with you and you cannot give correct information about its source, then it can be considered as undeclared income. In such cases, the tax officer can impose heavy taxes and penalties on the concerned person. This amount of penalty can be up to 78 percent of the total undeclared income. For example, if you have undeclared income of Rs 1 crore, then a fine of Rs 78 lakh can be imposed on it.

What kind of precaution is necessary
If you do business, then your cashbook and account book should be matching. Any amount that you are keeping in your house must have official documents related to its earnings and savings. In this sense, keeping cash at home in India is not a crime in the eyes of law, but accountability is necessary for it. If you have earned this amount honestly, then there is nothing to worry about and your accountability is the biggest security.

Disclaimer: This content has been sourced and edited from News 18 hindi. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.