Last Update: January 19, 2023, 12:26 pm IST
If cash you keep in your home is taxable, you’ll already have to pay tax on it.
Black money hoarders who fail to explain their source of income during raids can be fined up to 137 per cent of the cash discovered.
There is no legal requirement to disclose the whereabouts of your cash to any authority. But you must be aware of the source of your cash. You must have relevant documents, which shows the source through which you have earned the money. These documents will be required in case the IT department conducts a raid and finds a large amount of cash in your house. Black money hoarders can be subjected to tax and penalty of up to 137 per cent of the cash discovered if they fail to explain the source of their income during raids, according to an earlier warning by the Income Tax (IT) department.
If cash you keep in your home is taxable, you’ll already have to pay tax on it. If you do not have all the necessary documents of your cash sources and taxes paid, you can be in serious trouble. In such a situation, apart from the IT department, ED and CBI can also interrogate you. But if you have the right documents, you need not worry.
You can be penalized if there is any discrepancy in your data. As per the Income Tax Act, you will have to pay a penalty equal to 137 per cent of the cash found in your residence. The tax rate will be 107.25 percent if undisclosed money is accepted during the search, taxes are paid, returns are filed or the person confirms how the money was acquired.
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