Are You Aware Of The Income Tax Act That Restricts Cash In Home?
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Income tax personnel will seize the unaccounted money and the fine can be up to 137% of the total money.
According to the Income Tax act, there is no bar on the amount of money stored in the house.
In India, with the advent of digital transactions, citizens are adapting to the new normal. On the flip side, there is still a majority of Indians who rely on and trust the traditional method of keeping money at home. Are you one of those? You can be but do you know, there are certain restrictions on the amount that can be stored in a house? If you are a businessman then keeping cash at home can be quite common but what if income tax officials raid your residence? If you want to protect yourself and your family then read further to know.
According to the Income Tax act, there is no bar on the amount of money stored in the house. But in case of an income tax raid, a person should present the source of the money. Especially the money should not be unaccounted for in income. If your documents do not match the amount of money kept in the house then income tax officials can penalise you. In such circumstances, income tax personnel will seize the unaccounted money and the fine can be up to 137% of the total money.
Always remember these rules related to cash formulated by the income tax department.
No person is permitted to accept in cash Rs 20,000 or more for any loan or deposit. The rule also complies with any transfers of immovable property of the person.
Cash transactions exceeding Rs 20 lakh in any financial year can attract a penalty only if it’s unaccounted for and unsourced.
As per the Central Board of Direct Taxation, it is necessary to show PAN numbers and details for depositing or withdrawing more than Rs 50,000 at a time.
If an account holder deposits Rs 20 lakh in cash in a year, then he/ she is liable to show PAN and Aadhaar information.
Any Indian citizen can come under the scrutiny of the investigating agency if the purchase or sale of assets is completed via cash of more than Rs 30 lakh.
During the payment of a credit-debit card, if a cardholder pays more than one lakh rupees at a time, then there can be an investigation against the person.
A cash amount of about Rs 2 lakh cannot be taken from relatives in a day. The process has to clear through the bank.
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