Wager Mage
Wager Mage
Photo: cottonbro studio
Keeping cash at home depends on two things, your financial capability and your transactional habit. With regards how much cash can people keep in their homes, then there are no such limits as to how much cash can be kept at homes. You can keep as much cash at home as people want.
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Read More »To tackle the problem of tax evasion and prevalence of black money there are several rules made by the Government of India regarding how much cash can be kept in one's possession and also regarding cash transactions. Therefore, a basic question that arises is whether there is any limits on how much cash can be kept at home? Keeping cash at home depends on two things, your financial capability and your transactional habit. With regards how much cash can people keep in their homes, then there are no such limits as to how much cash can be kept at homes. You can keep as much cash at home as people want. The only that needs to be remembered is that you should have a record of each and every penny and also have evidence of the source of your income and whether you have paid your taxes or not. According to the income tax rules, you can keep any amount of cash at home. Just in case you get caught by the investigating agency for any reason, then you will have to prove its source. Along with this, ITR declaration will also have to be shown. If you are not able to do this then action can be taken against you. After demonetisation, the Income Tax had said that if undisclosed cash is found in your house, then up to 137 per cent of the total recovered amount can be taxed. According to the rules of the Central Board of Direct Taxes , you have to show your PAN card whenever you deposit cash or make cash withdrawals of above Rs 50,000 at a time. If you deposit more than 20 lakh cash in a year, then he will have to show your PAN and Aadhaar card. If you fail to do so then a fine of up to 20 lakhs can be imposed upon you
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