How much cash can be kept in the house..!? Is it a problem..!?

 How much money can be kept in cash? What are the terms for cash transactions? We always have money for expenses. Without money in hand, our strength seems to be diminished. Cash is very important for everyone. wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital spending is also increasing in today's modern age. Moreover, today's youth don't even have a single rupee in hand, they do all their transactions digitally. Even if we have crores of rupees in our bank account, if we do not have money in hand, it is as if our hand is broken. But think of the situation twenty years ago! Cash is a must in everyone's wallet. wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital money transfer has made money transfers easier as times change and so do spending habits. However, the habit of spending money in our hands will never change. To control problems like tax evasion and black money, the government has made several rules regarding money.


Corona period:

It is important to know about these rules. wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital transactions have increased rapidly since the Corona period. Now we do online transactions no matter how big the amount.

Cash transaction:

Not only those who are easy to use the internet but also those who do not know how to do online banking, often prefer to do transactions through cash even though they are doing online transactions.
Because of this, people still keep a lot of money at home. But to control problems like tax evasion and black money, the government has made many rules regarding money. How much cash can you keep at home with changing times? Is there a limit to that? How much money can be kept in a bank account? Many people have such questions. Even more so, how much cash can you keep at home? Know the rules related to these, otherwise, Income Tax may take action.

What are the rules for holding cash?

As per income tax rules, no special provision or limitation has been made for keeping cash in the house. Financially strong people may have more cash. Businessmen, shopkeepers, and other parties can keep as much money as they want at home. But you must have proof of that amount.

If the investigating agency asks about the money you have, you will need to show proof of the cash you have. Apart from this, ITR-related information should also be displayed. This means that you have to prove that you are not earning money the wrong way and that you have an account for the money you have. If you have an account for your money, no matter how much money you have at home, there is no need to worry.
What action can be taken if cash is held?

If you cannot tell the investigating agency the source of the cash you have, it will be a big problem for you. The investigating agency is informed about the matter and the Income Tax Department checks how much tax you have paid. Meanwhile, the income tax department can take action against you if you have an undisclosed amount in calculations. In such a case, tax up to 137% of the undisclosed amount may be payable. According to the Central Board of Direct Taxes, if you withdraw cash from a bank above Rs 50,000 at a time, you must mention your PAN card number. Under Section 194N of the Income Tax Act, a person has to pay TDS if he withdraws more than Rs 20 lakh in a financial year. However, it should be noted that this provision is only for those who have not filed an Income Tax Return (ITR) for 3 consecutive years.
ITR ie Income Tax Return filers have some relief in this regard. Income taxpayers can withdraw up to Rs 1 crore in a financial year from a bank, post office, or co-operative bank account without paying TDS. 2% TDS is payable on bank withdrawals above Rs 1 crore in a year. If no ITR has been filed for the last three years, 2% TDS is payable on transactions above Rs 20 lakh and 5% TDS is payable on transactions above Rs 1 crore.
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Sowmiya Sriram

12/01/2024 12:08 PM