Guidelines for Cash AT Home: There have been reports many times that the government is setting a limit to keep cash at home, but this was termed as a false claim by the government. It was said in the media reports that the government will decide the limit of cash that can be kept in the house. This range was estimated to be between Rs 3 to 15 lakhs. However, the government denied this and said, “There is no limit on the amount of cash that can be kept at home.”
Experts were of the opinion that India being a developing economy, it would be difficult to set a minimum limit for this. Let us tell you that there is no limit to keep cash at your home, nor is there any rule under which you have to keep cash. You can keep as much cash at home as you want. The only rule you should remember is that you should have every pie account that what is your source of income and whether you have paid tax or not.
Cash Transaction Limit
Cash transactions traditionally play an important role in the Indian economy and are a constant cause of accumulation of black money. The government has, from time to time, prescribed various limits on cash transactions to combat black money. Cash paid or received in excess of these limits is punishable with a heavy fine of up to 100 per cent of the amount paid or received.
India’s income tax laws prohibit cash transactions above Rs 2 lakh for any reason. For example, if you are buying gold jewelery worth ₹ 3 lakh in a single transaction, you will need to make the payment through cheque, credit card, debit card or bank transfer.