Income Tax: You can keep as much cash as you want in your house, there will be no income tax raid, just know these rules..

You must have heard the news of huge cash being found in the house in the Income Tax and ED raids. In such a situation, the question arises how much cash can a person keep at home? If a lot of cash is found in someone's house, what action is taken against him? Here we are going to talk about this.

According to the Income Tax rules, there is no limit to keeping cash at home. You can keep as much cash as you want in your house. However, if ever the investigating agency catches it, then you will have to tell its legitimate source. If you have earned that money legally, then no action is taken against you.

It is important to pay income tax
You have to be cautious if you keep more cash at home. You must have a legitimate source of cash and documents related to it. According to the income, your income tax should also be paid. If you present this evidence in front of the investigating agency in case of more cash being caught, then no action can be taken against you. You need to know these rules. If you do not have the information, you may have to pay a hefty fine.

The fine is imposed for not disclosing the legitimate source-
If unaccounted cash is found in your house and you are unable to tell its legitimate source, then investigation agencies can take action. The Income Tax Department can charge a fine of up to 137% of the recovered cash. This means that you may have to pay 37% more than the cash recovered.

Keep these things in mind during cash transactions-

- You have to show your PAN card for withdrawing or depositing Rs 50,000 or more at a time in the bank.

- At the same time, you cannot make a payment of more than Rs 2 lakh in cash while shopping.

- For this also you will have to show your PAN and Aadhaar.

- Apart from this, if you deposit more than Rs 20 lakh in your bank account in a year, then also you will have to show your PAN and Aadhaar in the bank.

Disclaimer: This content has been sourced and edited from Hr Breaking. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.