Income Tax Department has made a new rule for keeping cash at home, check the rule immediately

Cash Limit at home: In today’s time, most people prefer to do online transactions instead of cash. But still the need for cash has not reduced. Even today, transactions are done in cash in business etc. Apart from this, people who are not UPI friendly also use cash. Because of this, people also keep cash in their homes. But if you have kept a lot of cash at home, then you should understand some rules because if there is even a slight mistake in this matter, the Income Tax Department can take action against you.

Is there any limit on keeping cash?

According to the Income Tax rules, no specific rule or limit has been made for keeping cash at home. If you are financially capable, you can keep any amount of cash at home. But you should have the source of that money. If you are ever questioned by an investigating agency, you will have to show the source. You will also have to show the ITR declaration.

What will happen if you are unable to tell the source?

If you are unable to tell the source of the money, then it can be a big problem for you. In such a situation, the Income Tax Department investigates how much tax you have paid. If undisclosed cash is found in the calculation, then action can be taken against you by the Income Tax Department. In such a situation, a hefty penalty can be recovered from you.

In such cases, arrest is possible

Many times we see in the news that IT raids are conducted at the house of some bureaucrat, officer or businessman and cash worth lakhs and crores of rupees is found. This cash is unauthorized cash. The Income Tax Department asks about the source of that income before taking action. When the person is unable to give information about the source of income, then action is taken. In such a case, his cash is confiscated. The person is also penalized and many times even arrested. Overall, whatever cash you keep at home, it is necessary for you to have its source.

What are the other rules in the case of cash?

According to the Central Board of Direct Taxes, if you withdraw or deposit more than 50 thousand rupees in cash from your bank account at one time, you will have to show your PAN card.

What is Section 194N of the Income Tax Act

Under Section 194N of the Income Tax Act, if a person who has not filed Income Tax Return (ITR) for the last 3 years withdraws more than Rs 20 lakh from the bank in a financial year, then he will have to pay 2% TDS on transactions of Rs 20 lakh and 5% TDS on transactions of more than Rs 1 crore. People who have filed ITR get some relief in this matter. Such people can withdraw up to Rs 1 crore in cash in a financial year from their bank, post office or co-operative bank account without paying TDS. 2% TDS will have to be paid if more than Rs 1 crore cash is withdrawn from the bank in a year.

The post Income Tax Department has made a new rule for keeping cash at home, check the rule immediately first appeared on informalnewz.

News