How much cash can I keep at home? Be aware of the rules.

How much cash can I keep at home? Be aware of the rules.

axpertmedia By: RAJPAL NEHRA

Many have heard of Income Tax Department and ED raids for exceeding cash limits at home.

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When faced with such situations, the first question is how much cash can be kept at home.

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You cannot take cash loan of more than Rs 2 lakh or loan of more than Rs 20,000 even from any close friend. Cash donation above Rs 2,000 is also a matter of investigation.

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The government does not regulate the amount of cash kept at home, but it is important to disclose the source.

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The Central Board of Direct Taxes allows a maximum deposit of ₹ 50,000 cash per bank account, requiring a PAN card.

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If you deposit cash up to ₹ 20 lakh in a bank in a year, then both Aadhaar and PAN card are mandatory. Failure to do so may result in a fine of ₹20 lakh.

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Withdrawal of more than Rs 1 crore cash from the bank in a year may attract 2% TDS and fine for cash transactions of more than Rs 20 lakh.

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