Cash Transaction Limits: In today’s era of digital payments, there are some people who still transact in cash, for this they also keep money at home. The income tax department has set a limit for keeping cash at home. If you keep more cash than this limit, then it can also increase your problems. Let us know in detail what limit has been set by the income tax department from keeping cash at home to transactions.
It is often seen that people keep cash at home for emergency or sudden needs because it becomes difficult to go to the bank and withdraw cash suddenly. In such a situation, if you also keep cash at home, then this news can be very useful for you. Many updates are issued from time to time by the Income Tax Department (IT Rules for cash Transaction). Recently, the department has issued an update regarding the limit of keeping cash at home. Know in the news what is the limit of keeping cash at home.
You can keep this much cash at home-
The Income Tax Department has not set a limit for keeping cash at home, but it is very important that you have a source of that money. If this cash does not match your income or you do not have any known source of it, then you may also face problems. If you have earned or received that money in the right way, along with this you also have complete documents of the cash, then in such a situation you do not need to worry.
Cannot transact more cash than this in a day-
According to the rules of the Income Tax Department, rules have been made by the department regarding the transaction of cash of Rs 2 lakh or more. According to section 269ST of the Income Tax Act, no person is allowed to transact more than Rs 2 lakh in a single day (one time transaction limit). To make more transactions than this, payment can be made through check, card payment or bank transfer.
More cash cannot be accepted as a gift-
If we talk about the limit of cash transaction as a gift, then no person can gift Rs 2 lakh or more cash (ek baar me kitna cash gift kiya ja sakta hai) and neither can a person accept more cash than this as a gift.
According to the rules, this rule is also applicable on the money received by a person from his relatives. If people break this rule and accept cash more than Rs 2 lakh, then action can be taken against them by the department and then they have to pay a huge fine.
You can make this much cash payment for business-
If you are thinking of making payment in cash for business (Cash payment limit), then a person should not make a cash payment of more than Rs 10,000 in a single day. However, for those who do transport business, this limit has been fixed at Rs 35,000.
You can use this much cash to pay the loan-
If we talk about the limit of cash at home in case of loan payment, then a person cannot accept cash of Rs 20,000 or more under Section 269SS and 269T of the Income Tax Act. Along with this, he cannot make payment (ghar me paise rakhne ki limit) or repayment to any institution or person. Apart from this, you cannot give an advance of more than Rs 20,000 in a day for property transactions.
You cannot deposit more than this amount in a year-
If we talk about the limit of depositing cash in your account in a financial year (cash withdrawal limit per day), then if you deposit Rs 20 lakh or more in your account in a financial year and you do not have the source of that money, then you may face problems. Apart from this, if you go to the bank and withdraw or deposit more than Rs 50,000 in cash (cash deposit limit per day), then you will have to show your PAN card. Also, during shopping, you cannot make payment of more than 2 lakhs in cash.
There is also a limit to pay insurance installment –
The government has stated that taxpayers should also follow the limit for paying their medical insurance premium. If all medical premiums are paid by any other means other than cash, then there should be information about the limit. Failing this, the taxpayer can claim deduction under section 80D.
