Home cash withdrawal cap: Great news! The income tax department has established a limit for holding cash at home; if it is exceeded, raids will occur

 Home cash withdrawal cap: Great news! The income tax department has established a limit for holding cash at home; if it is exceeded, raids will occur

Do you know the maximum amount of cash that can be held at home? What is the upper limit set in this case by the Income Tax Department. Understand the law...

Guidelines for Cash at Home: If you have a tendency to keep the majority of your cash at home, this could be quite detrimental to you. Businessmen frequently need to retain cash on hand, even if they deposit it in the bank the following day. That's okay though. But, there are some people who have a lot of money and retain it in their home, only to get imprisoned later. If you follow suit, this information may prove useful to you. The guidelines that the Income Tax Department has created for this will be described. Whose details you ought to be aware of.

During the raid, money was taken from the home.

You should be aware of the cash storage restrictions set forth by the Income Tax Department. It's well known that during the recent assembly elections in the states, it was discovered that many people's homes were filled with cash. Every day, cops are paying back millions of rupees in cash. In such a circumstance, the question of how much cash the average person should store in their home to avoid repercussions emerges.

If caught, will have to reveal the source.

You'll have to reveal the source of the money if the investigating agency finds you. You must have accurate records of the money you earned if you did it right. Also, if his income tax return has been filed, you do not need to freak out. If you are unable to reveal the source, powerful investigative agencies like the ED and CBI will take action against you.

that is acceptable

How much of a fine must you pay if you are found in your home with unaccounted cash? The Central Board of Direct Taxes (CBDT) has stated that if you are unable to identify the source of money retained at home, you could be subject to a fine of up to 137 percent.

recollect these points

• Transactions exceeding Rs 20 lakh in cash in a financial year may trigger a penalty.

• A PAN number must be provided when depositing or withdrawing more than Rs 50,000 in cash at once.

• If a person deposits 20 lakh rupees in cash in a year, he must provide PAN (PAN) and Aadhaar information (Aadhaar).

• Failure to provide PAN and Aadhaar details may result in fines of up to Rs 20 lakh being imposed.

• Cash transactions for purchases over Rs 2 lakh are prohibited.

• Purchases over Rs 2 lakh in cash will require the presentation of a copy of the PAN and Aadhar card.

• If a person buys or sells property for more than Rs 30 lakh in cash, the investigating agency may become interested in them.


• If a person uses a credit or debit card to make a payment and does so in one go with a sum greater than Rs 1 lakh, this can be looked into.

• You are not allowed to accept from your relatives more than Rs 2 lakh in cash every day. This has to be done through the bank.

• A maximum of Rs 2,000 has been set for cash donations.

• No one may borrow more than $20,000 in cash from another individual.

• TDS must be paid if you withdraw more than Rs 2 crore in cash from the bank.