To eliminate problems like tax evasion or black money, there are many rules regarding cash and transactions in the country. But ever since the government announced the withdrawal of Rs 2,000 notes from circulation, people are worried about keeping cash at home. One of the basic questions is whether how much cash can be kept in the house. Keeping cash at home depends on two things. First your financial condition and second transaction. If you keep a large amount of cash at home, then understand the rules so that you do not face any problem.
There is no limit to keep cash
Preferred CA Rajesh Khaitan told that there is no such rule that you can keep cash at home up to a certain limit. No rule compels you to keep a limited amount of cash at home. In other words, you can keep cash at home according to your financial condition. He told that according to the rules of income tax, you can keep any amount of cash in your house. But if the investigating agency catches you, you will have to disclose its means.
Action can be taken in these circumstances
Rajesh Khaitan told that if you have earned that money legally and have complete documents or have filed income tax return, then there is no need to panic. But if you are not able to tell the source, then the Income Tax Department can take action against you. Generally, if more than 10 lakh amount is received during the survey at the place of business, it can be converted into search. Also, you can accept less than two lakh amount in any deal, otherwise you can be fined up to 100%.
may have to pay fine
Khaitan told that if you do not give the correct information about that cash, then you may have to pay a heavy fine. You may be taxed up to 137% of that amount on cash withdrawals.
