Beware! Do not keep more money than this much, or else Vigilance can raid your house
Even in the age of digital, most people keep cash in their houses. It is because they face problems like server issue and slow network connectivity during online payment. But do you know what should be the limit for keeping cash at home? Your house can be raided and action can be taken against you for the excess amount of cash stored in your house. Be aware that if you keep money beyond the limit, action might be taken against you.
There is no specific restriction on keeping cash at home under the Income Tax Act. In this case, the question arises as to whether the income tax department can issue a notice if the amount is more than the limit. So we would like to inform you that there is no specific limit to keeping cash in the house, but if a person comes under the scrutiny of Income Tax department, then it is necessary to tell about all the sources of cash kept by him. But if he is not able to provide satisfactory answer of legal source of the cash, then a penalty of up to 137% of the amount can be imposed against him.
One also must know that there are some rules regarding cash transactions. The Income Tax Department prohibits any person from accepting cash of Rs 20,000 or more for loan or deposit. Similarly, PAN number has been made mandatory for transactions exceeding Rs 50,000. Apart from this, any person involved in buying and selling property with more than 30 lakh rupees in cash per year can come under scrutiny. Similarly, there is a restriction on cash payment of more than 2 lakhs at the time of purchase.
We would like to inform you that any agencies including the Income Tax Department can raid any house if they suspect anyone. One need not to be worried even if huge amount of cash is seized during the raid in the house, the person just needs to explain about the source of money. But strict action will be taken against the person if the money is found to be accumulated illegally.
