KEEPING TOO MUCH CASH AT HOME? YOU MAY FACE THIS MUCH PENALTY UNDER NEW TAX RULES

India has made its income tax rules around cash transactions much stricter, leaving many people unsure about what is allowed. To clear this confusion, investment banker Sarthak Ahuja explained the new changes in simple terms. He said that the government is now focusing on stopping unaccounted cash found during searches and the fines can be very high if someone cannot explain the money at home. He shared that unexplained cash can attract a tax and penalty of up to 84 per cent.

For example, if someone withdraws more than Rs 10 Lakh in a year from their savings account, the bank will inform the tax department. If withdrawals cross Rs 20 Lakh, the bank will also cut TDS. This can lead the authorities to check further if they feel something is not right. Ahuja also added that taking cash above certain limits, such as while selling property, dealing with customers or accepting loans, can result in a 100 per cent penalty. He warned that the government is tracking everyone and people should be careful with transactions.

Unexplained Cash Can Now Attract A High Penalty

Taking to Instagram, Sarthak Ahuja explained, “Now there is going to be a tax of 84% on any cash that you keep at your home, which the tax department thinks is unexplained. Now, a lot of people would think how the income tax department can find out? Well, if you withdraw cash from your savings account through the year of more than Rs 10 Lakh, your bank is going to report that to the tax department and they can come and question you. In fact, they can also come and check your home for what cash is found there.”

“If you sell someone a property and receive cash of more than Rs 20,000, there is a 100% penalty on that entire amount of cash received. If you have taken any loan from any person in cash of any amount, there is a 100% penalty on that entire amount. If you make sales to someone and collect cash from one customer of more than Rs 2 lakh in one day well, there is a 100% penalty on that and if you think the income tax department can’t catch you, well you have no idea, these people are literally tracking every digital or non digital transaction that you are making,” the investment banker added.

Social Media Users Express Concerns About Fairness And Government Monitoring

Reacting to the post, a user wrote, “The day the common man wakes up and makes noise, all this nonsense will stop, government questioning common man and tracking all our money, while if we question or ask the government where they spend our taxpayers’ money, we are anti national.”

Another asked, “Government is interested in keeping people gareeb? What’s 10L? In a year?”

“Taxes like European countries and services like Somalia and Afghanistan. Will not go after politicians, influential people, builders, but only after the common man. Scary times,” a comment read.

An individual stated, “If you withdraw from a bank, the money is already legal, they can’t decide how we spend it.”

Another jokingly mentioned, “Joke’s on you, I’m broke.”

One more added, “Why even charge 84% take everything. Any which way u will come back for the 16%.”

The main goal of the government is to reduce unaccounted income. For regular taxpayers, keeping proper records has now become essential. Bank statements, income proofs, old bills and even small receipts can protect you from the authorities. Many are turning to digital payments because they create a clear record of transactions.

2025-12-10T03:09:02Z