Rules For Cash: You often hear news in the media that the Income Tax Department raided someone’s house and seized cash worth crores. Income Tax Department officials often raid people’s homes. And they capture expensive things and a lot of cash from the houses. It has been seen on many occasions that officials seize the cash found during raids. Question comes in people’s mind. How much cash should be kept at home? Is there any law for this? If you keep too much, will the Income Tax Department come? Let us know the answers to these questions.
There is no law regarding keeping cash
There is no provision in Indian law regarding whether you keep ₹100 or ₹100 crore in your house. Nor is there any rule that a person can keep cash or expensive things in the house only to this extent. But cash can be kept in this quantity. Whatever income you have. That means you will have to give complete details of that cash. You must have mentioned about that cash in your ITR. That money should not be illegal in any way. And when you are asked for information about it, you can give complete information.
action may be taken
According to tax experts, neither RBI nor Income Tax Department has made any rule under any law regarding keeping cash. You can keep as much cash at home as you want. But the condition is that you will have to keep complete accounts of all the money. If the Income Tax Department suspects that the amount of cash you have is suspicious.
Then the department can start investigating it. And you will have to give information and explanation regarding that cash in the investigation. If you fail to explain where the cash came from and what was its source. Then action will be taken against you and your cash can also be confiscated.