NEW DELHI: In the aftermath of Income Tax raids revealing a staggering Rs 351 crore in money at Congress MP Dhiraj Prasad Sahu’s premises, the politician has damaged his silence, asserting the funds stem from his household’s liquor enterprise, vehemently disassociating it from any political affiliations.
Speaking completely to information company ANI, Sahu expressed his dismay, stating, “In the last 30-35 years of my political career, this is the first time that this kind of incident has taken place, due to which I am hurt. What is happening today makes me sad. I can admit that the money that has been recovered belongs to my firm. The cash that has been recovered is related to my liquor firms; it is the proceeds from the sale of liquor.”
Understanding Cash Limits: What the Income Tax Rules Say?
Against the backdrop of this high-profile raid, questions come up in regards to the permissible limits of money holdings at dwelling and the implications of the most recent Income Tax guidelines.
According to the Income Tax Act, there is no particular restriction on the amount of cash saved at dwelling. However, throughout an revenue tax raid, it turns into essential for a person to substantiate the supply of the cash. Unaccounted funds may end up in penalties, with revenue tax officers licensed to grab the unexplained cash, imposing fines of as much as 137% of the entire quantity.
Crucial Cash Rules To Remember
No Acceptance Of Rs 20,000 or More in Cash for Loans or Deposits: The revenue tax division strictly prohibits any individual from accepting Rs 20,000 or extra in money for loans or deposits.
PAN Numbers Mandatory For Transactions Above Rs 50,000: According to the Central Board of Direct Taxation, people should present PAN numbers for deposits or withdrawals exceeding Rs 50,000 at a time.
Scrutiny Of Cash-Based Asset Transactions Above Rs 30 Lakh: Indian residents partaking within the buy or sale of belongings by way of money exceeding Rs 30 lakh might come below the scrutiny of investigating companies.
Investigation Into Credit-Debit Card Transactions Above Rs 1 Lakh: Payment exceeding one lakh rupees by means of credit score or debit playing cards at a time might set off investigations.
2% TDS on Withdrawals Exceeding 1 Crore: Individuals withdrawing greater than Rs 1 crore in money from the financial institution in a yr are liable to pay a 2% TDS.
Fine For Cash Transactions Over 20 Lakhs: Cash transactions surpassing 20 lakhs in a yr might entice penalties, whereas the acquisition and sale of money property over 30 lakhs can immediate investigations.
Caps On Cash Payments: Limits embrace not paying greater than 2 lakh in money for purchases with out PAN and Aadhaar particulars, and restrictions on transactions above Rs 1 lakh with credit-debit playing cards.
Family Transactions And Loans: Receiving greater than Rs 2 lakh in money from a relative in a day or taking a mortgage above Rs 20,000 in money from anybody else is prohibited.
Understanding these guidelines is paramount to avoiding authorized repercussions and making certain compliance with revenue tax rules.
