Cash Limit: In today’s digital era, everyone transacts online. Whether it is petrol or daily use items, people pay online. Despite this, people still have the habit of keeping cash. The main reason for this is that people can use this cash in an emergency. But do you know that a limit has been set for keeping cash at home? If you do not know, then the Income Tax Department can tighten the noose on you.
Let us tell you that a rule has been made by the Income Tax Department. Under this rule, the limit for keeping cash at home has been fixed. If the Income Tax Department tightens the noose, you may have to tell the source of income. In such a situation, know about the rules and conditions set by the Income Tax Department.
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Know what the limit is for keeping cash at home
According to the Income Tax Department, there is no limit for keeping cash at home, which means that you can keep cash at home as per your wish. However, it becomes necessary to tell what the source of the cash.
It is necessary to have proof of the source
Let us tell you that even though there is no limit on keeping cash, the tax department sees where this money has come from. If you are unable to tell its source, then it can be considered illegal income. In this, whether your salary, business income, or money from selling property, it is necessary to have a source.
ITR is required
If the cash kept with you is visible in the income tax return, then you can easily answer any question. In this, it becomes necessary to keep the receipt or agreement of the amount received on selling the property properly. Having documents saves you from legal problems. Rather, it can strengthen your financial position.
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There can be a loss without documents
Let us tell you that if the income tax department finds cash in your house and you are unable to tell its source, then you may have to face the action of the income tax department. There are many such cases in which, along with a penalty, one has to go to jail.