Dear all
I hv query re Income Tax
Is there any provision which restricts holding of Cash more than Rs. 15 lakh???
Hi,
As of now, there is no limit or capping on the limit of holding cash as per Income Tax Act or any other Act, for that metter.
Although, a recommendation has been made by an SIT constituted by the Supreme Court to cap holding of cash upto Rs. 15 lakhs, but it has not been accepted and inserted into any Act.
This is because it requires further discussion because it may create genuine difficulty with certain class of people such as traders and contractors. Also, enforcing becomes quite a challenge because in the name of checking cash balance with any trader, a tax inspector can walk into anybody’s premises.
Though, a general idea of holding cash is to hold it in proportion to the income filed in the ITR and holding more cash than the proportions may be a matter of concern.
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