In India, What is the maximum amount of cash that an individual can keep with him legally?



In India, What is the maximum amount of cash that an individual can keep with him legally without paying any tax?? I am salaried and have paid income tax. Over the years, i have got back the personal loans given to friends and relatives and it is in cash…Do i need to give tax for that amount again?? Or else, is there any governement regulation on maximum amount of hard cash(currency) that an individual can keep with him ( Not in a bank)??

In India, What is the maximum amount of cash that an individual can keep with him legally?
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3 Replies to “In India, What is the maximum amount of cash that an individual can keep with him legally?”

  1. If you paid taxes on the money you lent, and paid taxes on any interest they may have paid on the loans, then you owe no additional tax and may hold all the cash you want.



  2. There is no restriction or limit of keeping cash as per IT rules.The only thing is your return should reflect by way of svings & question may be asked why you have not deposited with the bank or invested instead of keeping at your home.If you have given loans in the past, your a/c should reflect & similarly in the books of your friends & relatives as loan recd.& paid.It appears that the cash is not properly accounted for & if it is few thousands you can justify as your savings but if it is in lacs than it amounts to in excess of your known source of income & you may be in problem.Best course would be to contact some CA & regularise this amount may be in 1-2 financial yrs.,even you have to pay tax on it.





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