Start Filing Your ITR Now
Our plans start from ₹ 399/-

Cash Limit at home: Exciting News! Income Tax Department sets limit for cash at home. Check it here!

Discover the New Cash Limit at Home Set by the Income Tax Department

Although digital transactions are becoming more popular, many people still keep cash at home for emergencies. But is it legal? This article aims to answer that question and provide you with all the information you need about storing cash at home, including the newly set cash limit.

What is the limit for cash storage?

The government has not set any limit on the amount of cash that one can store at home. However, it is crucial to note that the cash's origin and source must be well-documented and known to the individual.

Full payment of taxes

In the case of possessing a significant amount of cash, it is imperative to pay the appropriate taxes in full. Additionally, it is crucial to keep all documentation related to tax payment to provide evidence when necessary.

Potential fines

If the Income Tax Department conducts a search of your home and recovers a substantial amount of cash, heavy fines may be imposed if you cannot provide accurate information about its source. The fine may extend up to 137% of the seized amount.

Important details related to cash transactions

When withdrawing or depositing more than Rs 50,000 in a single transaction, PAN card details must be provided. Payment exceeding Rs 2 lakhs cannot be made while shopping without providing PAN and Aadhaar details. If cash deposits exceeding Rs 20 lakh are made in a year, PAN and Aadhaar details must be provided at the bank.

author

The Tax Heaven

Mr.Vishwas Agarwal✍📊, a seasoned Chartered Accountant 📈💼 and the co-founder & CEO of THE TAX HEAVEN, brings 10 years of expertise in financial management and taxation. Specializing in ITR filing 📑🗃, GST returns 📈💼, and income tax advisory. He offers astute financial guidance and compliance solutions to individuals and businesses alike. Their passion for simplifying complex financial concepts into actionable insights empowers readers with valuable knowledge for informed decision-making. Through insightful blog content, he aims to demystify financial complexities, offering practical advice and tips to navigate the intricate world of finance and taxation.

Subscribe to the exclusive updates!