New Delhi: Most of the transactions are done online, which does not cause any problem. It means that from paying electricity bills to mobile recharge, everything is done online. Now the habit of keeping cash at home has not ended. People like to keep cash in their pockets and at home for prestige and glory.
Many times, due to excess cash, the Income Tax Department conducts raids on information. But now this will not happen. In such a situation, it is very important to know how much cash is considered legitimate to keep at home. Is there any limit to keeping cash at home?
Does the Income Tax make any rules on these? If the source of money is not disclosed in the Income Tax raid, then the legal screws are tightened. First, know the important things.
Important things related to keeping cash at home
According to the report of the Income Tax Department, any amount of cash can be kept at home; there is no legal restriction on it. Considering the convenience, you can keep as much cash as you want. It is important that this money is a part of legitimate income or its source is clear. On the other hand, even though there is no limit on keeping cash, the Income Tax Department looks at where the money has come from.
If you are unable to provide proof of this, it can be considered undeclared income. It is considered necessary to keep a record of every source, be it salary, business income or money from selling property. At the same time, if the cash kept with you is visible in the Income Tax Return, then you can easily answer any inquiry. It is also necessary to keep the receipt or agreement of the amount received for the property safely.
Know what can be the loss without proof?
If the Income Tax Department finds cash from home and its source cannot be traced, then a heavy fine or legal action can be taken. In many such cases, there is a provision of a penalty on undeclared income as well as a jail sentence. This is the reason why keeping cash at home is not considered wrong, but it’s your responsibility should be yours.