Money a Person can Keep Legally at Home – According to the law, there is no set limit for money which you can keep at home. But, it is mandatory for the person to give valid reasons for that liquidity cash at home and also provide the sources when any inquiry is done. Failing to explain the sources at the time of inquiry would lead to 137% of penalty for the cash balance at home.
Do I Need to Pay Tax for Cash Withdrawal at Bank?
No tax is imposed on cash withdrawals from the bank, regardless of its limit. As per the Union Budget 2019, the banks are allowed to deduct a 2% of TDS on cash withdrawals which exceed the limit of Rs. 1 Crore in a single financial year.
Is There any Set Limit for Cash Deposit in My Account?
No, there is no limit or tax set by the RBI on cash deposit in bank accounts. But, the depositors are required to provide a valid explanation of the deposits made into their bank accounts. These deposits must be considered carefully at the time of Income Tax filing.
However, if the deposit amount is larger, then the bank is authorized to inform about the same to the Income Tax Department. In saving account, if the deposit amount is larger than Rs. 10 Lac, then the bank needs to report about the same to the income tax department. Similarly, for the current bank account, the deposit amount needs to be below Rs. 50 Lac and if it increases the same will be reported to the IT department. Moreover, the depositors are required to provide a copy of their PAN card and PAN number at the time of depositing the cash which is more than Rs. 50,000. Also, the PAN is required for making DD or Pay Order above Rs. 50, 000.
What Limit is Set for Credit Card Bill Payment?
The abovementioned limit for cash deposit in bank account applies for credit card bill payments.
How Much Amount can be Paid in Cash When Buying Immovable Property?
As per the law in India, the buyers of immovable property are only allowed to make a payment of Rs. 20, 000 to the seller. Exceeding the limit of Rs. 20, 000 may lead to a penalty of 100%.
What is the Limit for Cash Expenses in Business Transaction?
In business transactions, you are allowed to make cash payment not exceeding Rs. 10, 000. Any amount exceeding this limit is not to be considered as business expenditures under the Section 40A(3A) of Income Tax Act, 1961.
What is the Limit For Cash Expenses in Personal Expenditure?
According to Section 269ST, the cash expense limit for personal expenditure is set to Rs. 2 Lac.
What is the Cash Limit Set for Payments of Transporters?
As per the Section 40A(3A) of Income Tax Act, 1961, you are not allowed to make payments more than Rs. 35, 000 for plying, leasing and hiring goods carriage.
What is the Cash Limit Set for Marriage Expenditure?
For marriages, there is no limit set by the authorities, but the person spending the money in the marriage need to explain the sources of any amount spent. The upper limit set for marriage expenditure is not more than Rs. 2 Lac. Exceeding this limit may lead to a penalty of 78% of the total amount.
How Much Money can be Gifted to Family Members?
Cash gifts to family members must have a defined source and it must not exceed the limit of Rs. 2 Lac.
What is the Approved Cash Loan Limit?
The limit set for a cash loan is Rs. 20, 000 as per the Section 269SS and 269T and anything more than this limit is not allowed without a valid reason in writing.
How much Money is Allowed to be Carried in Public Transport?
Carrying any large amount of money is considered risky in public transport. But, there is no specific amount set. You can carry liquid cash up to Rs. 2 Lac in public transport. At the time of the general election in India, you can’t carry cash more than Rs. 50, 000. According to the Election Commission of India, anyone who is carrying more than Rs. 50, 000 needs to have at least three documentary proofs for carrying amount more than a set limit. The proofs must include legal source, business proof and end-use of the cash.
How Much Money you can Give as Gift to People Who are Not your Family?
Same limit as family members which is explained above. Any gift amount to nonfamily members more than Rs. 50, 000 is taxable in hands of recipients.
Is it Allowed to Give Cash Donations?
No limit has been set for a cash donation. But if the cash donation is more than Rs. 2000, the deduction benefit under Section 80G will not be allowed to avail.
