Income Tax News: In the current digital world, people spend currency much less frequently. That did not, however, come to an end. In particular, a lot of people solely maintain cash in their savings. Savings are kept closer to home by housewives than in banks.
Skepticism Towards Banks
Many others hold their money close to the vest and have little faith in banks. Is it allowed to keep money at home, though? Huge sums of money are found every day when raids are conducted on people’s houses and retrieved. If I keep more cash than I am allowed to, would the Income Tax Department send me a notice? Lets check here
No Limits on Home Cash Storage
No, is the response. There are no limits on the quantity of cash you can store at home. You are allowed to retain cash in your home in any amount, according Income Tax regulations. But, if someone is investigated by the Income Tax Department, he will have to reveal where the money came from. The person who is being investigated must present his paperwork if he has a valid source for such money. There’s no reason to worry if everything is okay.
The Impact of Unaccounted Home Cash
Your issues could get worse if you don’t account for funds. If the Income Tax Department raids your home and seizes a sizable quantity of cash. In addition, you can be hit with a hefty fee if you can’t provide accurate information regarding that money. A tax lien may be placed on you for up to 137% of the money that is retrieved from you. This implies that you will have to pay back 37% of the money you currently have.
PAN Card Requirement
We would like to inform you that in order to withdraw or deposit more than Rs 50,000 at a time from the bank, you will need to present your PAN card. Payments above Rs 2 lakh cannot be made in this circumstance while making purchases. You will need to present your PAN and Aadhaar for this as well. You would still need to present your PAN and Aadhaar cards to the bank if you make cash deposits totaling more than Rs 20 lakh in a single year.
Disclaimer: This information is intended for general knowledge only. Any financial decisions should be made in consultation with a qualified professional. DNP News Network Private Limited is not liable for any financial losses incurred based on the information provided here.
