In India, how much cash can you legally keep at home?

Indian citizens should be aware of the limitations on cash storage at home. Despite the fact that digital transactions in India have grown exponentially in recent years, many citizens still rely on traditional methods of keeping money at home. But, if we want to keep our money at home, we must first understand what the law says about this. It is critical to understand whether there are any restrictions on how much cash can be kept at home.

In fact, the Income Tax Act places no limit on the amount of money that can be deposited in a house. However, if Income Tax officials conduct a raid, a person must provide accurate information regarding the source of money deposited in his home. This money should never be left unaccounted for.

If the income documents do not match the amount of money kept at home, income tax officials have the authority to fine the individual. Under certain conditions, unaccounted money can be seized by income tax officials and fined up to 137 percent of the total amount.

To protect yourself in this regard, it is critical to remember the Income Tax Department’s cash-related rules. No one is permitted to accept cash in excess of Rs 20,000 for any loan or deposit. This rule also applies to the transfer of personal immovable property. Only unaccounted-for cash transactions exceeding Rs 20 lakh in any fiscal year are subject to a penalty.

According to the Central Board of Direct Taxation, when depositing or withdrawing more than Rs 50,000 in cash at a time, a PAN number and related information must be provided. If an account holder deposits Rs 20 lakh in cash in a year, they must provide their PAN and Aadhaar details.

If cash is used to sell or buy assets worth more than 30 lakh rupees, the investigating agency has the authority to investigate the Indian citizen. A person may be investigated if they earn more than one lakh rupees in a single transaction using their credit or debit card.

The investigating agency has the authority to investigate an Indian citizen if cash is used to sell or buy assets worth more than 30 lakh rupees. If a person earns more than one lakh rupees in a single transaction using their credit or debit card, they may be investigated.

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