Income Tax New Rules: Nowadays UPI service or net banking is mostly used for money transfers. Though the use of technology becomes more advanced with each passing day, the use of cash is equally resisted. Most people prefer to keep deposits at home rather than in banks. So do you know what limit is applied for keeping cash at home? Let’s tell you today of the new rules of the Income Tax Department that `have ticked’ in relation to the home cash limit.
With changing times banking too has undergone any number of changes. The use of online payment systems is the order of the day during this digital period. However, now cash is still used to a greater extent for transactions. Most people deposit their money in bank accounts whereas many distrusting souls keep their deposits at home. The cash-kept-at home rules and many other laws touching the same area are made by the Income Tax Department, and if you violate them-the department gets-the right to conduct a full-scale raid. We are telling you today what the limit is for keeping cash at home and what penalty can be imposed if someone is found keeping it above that limit.
The only explanation for this is that you can keep any amount of cash inside your home. The IncomeTax rules do not put any limit upon it on behalf of the taxpayer. When the Income Tax Department gets wound up with scrutiny, the burden of accounting for such cash will be on the taxpayer. It is the duty of a taxpayer under scrutiny to provide valid supporting documents, which in turn will verify his stand. In case everything checks out, he’s fine and should not fear.
If The Department Does Not Get The Correct Answer, There Will Be More Headaches
If you do not account for the cash found inside the house, your troubles may increase. The income tax department can conduct a raid on your house and seize a large amount of cash in that operation. Along with that, if you are also not able to furnish the correct information regarding the cash, then you will be liable to pay a heavy penalty. Up to 137% of tax (income tax new rules) can be charged on the amount of cash recovered from you, which means that apart from whatever cash you have, you have to pay an extra 37% on it.
Special Attention Should Be Given To These Points Also
Let us tell you that if you withdraw or deposit more than Rs 50,000 at a time in any bank, you will have to show a PAN card (money deposit rule). Your payments cannot exceed 2 lakhs during shopping, for which again PAN will be required along with Aadhaar. Also, in case of your depositing more than 20 lakh in a scheme in a year, PAN and Aadhaar will have to be presented at the bank.
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