How much cash can you legally keep at home in India?

financialexpress.com:

Often we hear the news of the income tax officials raiding the premises of someone for keeping unauthorised cash and other valuables at home or in office. In some cases, such cash and valuables get seized and in some other cases, the concerned persons also get arrested. Keeping this in view, the question that comes to our minds is: Is keeping a substantial amount of cash a crime in India? Or, how much cash one is allowed to keep at home?

According to tax experts, the Income Tax Act does not contain any provision on this aspect. One can keep any amount of cash at home, provided it is generated from a source and declared in the ITR and books of accounts.

CA Naveen Wadhwa, Vice President, Taxmann, says, “The Income Tax Act does not specify the permissible amount of cash an individual can retain at home. Individuals can possess a reasonable amount of cash derived from legitimate sources duly documented in their financial records. It is noteworthy that the Income Tax Act contains explicit provisions addressing unexplained income, outlined in Sections 68 to 69B. Should an individual possess a substantial sum of cash, tax authorities may initiate an inquiry into the source of the funds, necessitating a comprehensive explanation from the individual.”

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These provisions empower the Assessing Officer to seek clarification from the assessee if an unaccounted asset is discovered or if an asset is found but not adequately recorded in the books of account.

“Failure to furnish a satisfactory explanation about the nature and source of such funds may render the money taxable as unexplained income. In such instances, the unexplained income may attract a tax at the