How much cash can you keep at home? Here’s what Income Tax rules say

December 17, 2023
CA Chandan Agarwal's Office

Sahu expressed his disappointment, saying, “In the last 30-35 years of my political career, this is the first time that this kind of incident has taken place, due to which I am hurt. What is happening today makes me sad. I can admit that the money that has been recovered belongs to my firm. The cash that has been recovered is related to my liquor firms; it is the proceeds from the sale of liquor.”

Following Income Tax investigations that revealed a stunning Rs 351 crore in cash at the premises of Congress MP Dhiraj Prasad Sahu, the politician has broken his silence, claiming the riches came from his family’s liquor business and angrily disassociating it from any political associations.

Speaking exclusively to ANI, Sahu expressed his disappointment, saying, “In the last 30-35 years of my political career, this is the first time that this kind of incident has taken place, due to which I am hurt. What is happening today makes me sad. I can admit that the money that has been recovered belongs to my firm. The cash that has been recovered is related to my liquor firms; it is the proceeds from the sale of liquor.”

What Do the Income Tax Rules Say About Cash Limits?

With this high-profile raid as a backdrop, questions concerning the allowable limits of cash holdings at home and the ramifications of the current income tax rules arise.

According to the Income Tax Act, there are no particular limits on the amount of money that can be kept at home. During an income tax raid, however, it is critical for an individual to prove the source of the money. Unaccounted funds may result in penalties, with income tax inspectors authorized to seize unaccounted funds and levy fines of up to 137% of the total amount.

Important cash rules to remember

No acceptance of Rs 20,000 or more in cash for loans or deposits: The income tax authority absolutely bans any person from accepting Rs 20,000 or more in cash for loans or deposits.

Persons must submit PAN numbers for deposits or withdrawals above Rs 50,000: According to the Central Board of Direct Taxation, persons must submit PAN numbers for deposits or withdrawals above Rs 50,000 at a time.

Cash-Based Asset Transactions Over Rs 30 Lakh: Indian residents who purchase or sell assets in cash for more than Rs 30 lakh may face attention from investigating agencies.

Source: https://www.etnownews.com/personal-finance/how-much-cash-can-you-keep-at-home-heres-what-income-tax-rules-say-article-106049321

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