Cash Limit At Home: Recently, some very important changes have been made in India by the Government of India and the Income Tax Department concerning the rules about the limit of cash that people can keep at home. The purpose of these changes has been to curb evil money and illegal transactions. It is important for each citizen to know as to how much cash they can keep at home and what are the rules related to it.
Cash Limit At Home
The Income Tax Department states that no person can keep more than 2 lakh in cash in his or her house. This cash limit applies per family, i.e. the total cash held by all members of a family should not exceed 2 lakh. However, if there be special occasions when cash is going to be more than this limit-on a wedding or on festivals-the Income Tax Department needs to be informed about it.
Penalty For Violating The Rules
A penalty can be levied on a person keeping more than 2 lakh cash at home in case the said cash has not been reported to the Income Tax Department. A penalty could go up to 100% of the amount of total cash. For example, if someone is caught carrying an amount of 5 lakh, he/she might get to pay a penalty of 5 lakh.
Exceptions And Special Circumstances
Under instances like weddings or taking part in festivals or other social events, cash greater than the limit can be kept. However, they need to inform the Income Tax Department ahead of the celebrations. Also, cash for business purposes may have a limit, but the record and proper documentation for this is a must.
Advice For Citizens
Citizens are advised to conform to the rules concerning cash limits and not to keep cash at home unnecessarily. Should there be a necessity to keep cash above the limit on a festive occasion, the Income Tax Department may perhaps be informed. Also, any safe and transparent digital payment method should be looked into instead of cash.
Home cash limit rules are important for curbing black money and illegal transactions. Citizens using the above rules will be able to steer clear of legal troubles and, in so doing, also help the economy of the country.
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