Guidelines Regarding Cash Limits in Home under Tax Regulations

Guidelines Regarding Cash Limits in Home under Tax Regulations

Under the provisions of the Income-Tax Act (ITA) of 1961, there exists no stipulation on the maximum amount of cash permissible to be kept within one’s residence. However, during an income tax inspection, individuals must provide verifiable sources for the cash in their possession.

This particularly applies to funds that must be accounted for in terms of income. If the documentation provided by an individual does not align with the amount of cash found at their residence, income tax authorities possess the authority to penalize them. In such instances, unaccounted cash can be seized, with penalties reaching as high as 137% of the total amount.

It is imperative to consider the subsequent regulations regarding cash, as mandated by the income-tax department:

Adhering to these regulations is essential to avoid legal consequences and ensure full compliance with income tax laws and regulations.

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