Keep cash at home, be careful! Income tax will take steps, understand rules

Every common and special man in India sometimes comes the question that how much cash is legal to keep in the house? Especially if a large amount of cash for some reason is cash-whether it is the income of the business, money from the sale of land or property or any other source. But what does the income tax department say on this topic? Is there a fixed limit to keep cash in the house? Can there be a fine or jail for this? Let us know the rules, risk, restrictions and the necessary precautions to keep cash by income tax rules. Is there a limitation to keep cash in the house? First of all, it is important to know that no fixed limit in the Income Tax Act has been drawn up to keep cash in the home. That is, you can keep so much cash in your home – but with some conditions. If you have a justification, that is, you can prove from which source this money has come and your tax paid on it, you can keep the largest amount with you. What is important to care for while keeping cash at home? 1. Source of income must be clear. If your home is attacked by an investigative agency or income tax department and the cash amount is recovered there, you will be asked the source of the money. For example: Is it part of your salary? Is it out of selling a property? Is it earned from business? Did you pay tax on this? If you cannot tell the source of this amount, this amount will be considered unknown income. 2. ITR, that is, income tax returns, is needed, cash held in the home must be announced in ITR. That is, you mentioned it in your income tax return, only then will it be considered valid. Otherwise, the Income Tax Division may consider it a Benami property and take legal action against you. 3.. What will happen if the money is not proven in the investigation? If you cannot tell the income tax department where the money comes from, the amount can be confiscated. You can be fined (in many cases, a fine of 60-75% of the amount is fined). Even the arrest can come if it is proven to have deliberately tax evasion. Bank transactions and pan cards should not only keep cash in the house, but the government is also carefully monitored on bank transactions. So also know some important rules: 1. Pan is mandatory for more than £ 50,000 deposits or withdrawal, if you deposit or withdraw more than £ 50,000 in the bank at a time, it is mandatory for you to show PAN card. Without PAN number, such a large amount of cash will be considered a violation of the transaction rules. 2.. Strict rules for those who have not filled ITR for 3 years, if you have not submitted ITR for the past three years, and withdraw more than £ 20 lakh cash from the bank in a financial year, you must pay: 2% TDS (tax deduction from source) at an amount above £ 20 lakhs. If there is more than £ 1 crore cash transaction, this TDS could rise by 5%. But if your ITR submits regularly, you can get some relief from this rule. Also keep these rules cash in cash transactions: 1. Do not take more than £ 2 lakh cash. According to section 269th of Income Tax Act, no person per day can export more than £ 2 Lakh cash from a person. A fine can be imposed as much as £ 2 Lakh to violate it. 2. Cash gift on marriage or other opportunities, if someone has given you a cash gift of over £ 50,000 on the occasion of a wedding or function, it must be shown in ITR. If you cannot prove where the gift comes from, it can also be considered taxable income. Who should take more care to keep cash? Businessman: Those who have cash income must keep a complete record of every cash transaction. Property Merchant: Large cash runs in the sale of land and property, which can become the subject. Jewelers or other traders: Those who often have a large cash amount should keep the right accounting. How is the eye of the income tax section? In today’s digital era, the income tax department has many ways to find that a large amount is suddenly deposited into someone’s account. No one fills ITR, but he repeatedly pulls out big cash withdrawals from the bank. Red flag transactions are detected and followed by investigation. Therefore, the income tax department can start an investigation without any notice, if it is somewhat suspicious. So how much cash is kept at home? Although there is no simple limit, the financial advisor and tax experts agree: You hold cash according to your requirement and risk capacity. By holding an amount of more than £ 2 Lakh, you must keep strong documents and source voucher ready. Always try to earn most of your earnings by banking mediums so that the record of transactions is left. Conclusion: Surprise is that the protection is not a crime to keep cash in the home, but its liability must be corrected. If your tax rules follow, ITR fills and your income is valid, you don’t have to be afraid. But if you keep unannounced cash and can’t tell it at any time, you can be trapped in the legal crisis.