How much cash can be kept at home? New Rules Implemented

There is no limit to keeping cash at home, but there are restrictions. Appropriate document for that money should be with you. If the Income Tax (IT) department gets any undocumented money, need to pay 137% fine. PAN, Aadhaar document should be provided if cash transaction is more than Rs 20 lakh in a financial year.

There is news that the IT officials have seized more than Rs 300 crore in cash from the places belonging to one of the Central MPs. In the past, you have seen the scene on TV where the officials have repeatedly confiscated notes in many IT raids. If so, how much notes can be kept at home.

What is the limit for holding of cash money? As per the Income Tax Act, there is no limit on the amount of cash kept at home. You can keep as much cash as you want. However, there should be a proper document or explanation for that money.

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In case, there is no record for the money you keep at home, if money without record, the IT department will charge 137 percent fine. For example, if there is an undocumented amount of Rs 1 crore, the IT department can impose a penalty up to Rs 1.37 crore.

Know Cash and Money Transfer Rules:

A person cannot accept cash in excess of Rs 20,000 for any loan or deposit.

Even in the sale of a person’s personal property, no cash transfer of more than Rs 20,000 is allowed.

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In case of deposit or withdrawal of more than Rs 50,000 in one transaction, it is mandatory to enter PAN number.

Cash transactions exceeding Rs 20 lakh in any financial year but PAN and Aadhaar details must be provided.

If more than Rs 30 lakh cash is used for payment in property sale, it may face investigation.

Fund transfer cannot exceed Rs 1 lakh in one transaction through credit card or debit card.

Family members are restricted to withdraw more than Rs 2 lakh in a day.