ED unearthing cash in crores; here's how much cash and gold you can keep at home

Shreyoshi Guha
New Update
ED recovered cash and jewellery from the house of Arpita Mukherjee, a close aide to Minister Partha Chatterjee

In West Bengal's education recruitment scam, more than Rs 50 crore in cash and a 5 kg gold barge have been recovered from the house of Arpita Mukherjee, a close aide to Minister Partha Chatterjee.

The Enforcement Directorate recovered around Rs 21 crore from her South Kolkata flat after which both she and Partha Chatterjee were arrested. On Wednesday, the agency raided another flat in Belgharia from where Rs 28 crores was recovered.

In order to count the 'mountain of notes', the investigating agency had to procure machines and the agency was stunned to see so much gold.

However, Arpit Mukherjee denied being aware of the amount of cash and availability of gold in the house.

This is not the first time an incident like this has happened when so much gold and cash has been recovered. Many similar incidents like these have also happened before.

But incidents like these raise questions in the minds of people about how much cash and gold one can actually keep in their homes, and what's the limit.

Rules of keeping gold

In 1968, the Gold Control Act was established in the country. This act kept a watch on the amount of gold that was kept in one’s personal possession and controlled its sale. But in 1990 this act was abolished.

Currently, there is no limit to keeping gold at home, as long as you have a valid source and proof of the gold kept.

But if you don’t reveal the source of income, the limit for keeping gold in the house is fixed. If you keep gold in the house within this limit, then the Income Tax Department won't confiscate it.

How much gold one can keep without giving valid proof?

According to government rules, a married woman can keep up to 500 grams of gold, while an unmarried woman can keep 250 grams, and a married man can keep upto 100 grams of gold.

If someone keeps gold within this limit, then the Income Tax Department will not seize it. If gold is kept in the house for more than this quantity then it's necessary to give information about its source.

In how much quantity of gold action is taken?

According to the Central Board of Direct Taxes (CBDT), there is no bar on keeping gold jewellery when the source of information is provided. But according to section 13 of the Income Tax Act 1961, the Income Tax Officers have the authority to confiscate the jewellery in excess of the limit.

Apart from this, if it's a gift of gold jewellery below Rs 50 thousand or if the jewellery is inherited then it does not come under the purview of tax. But it has to be proved that it is a gift or the jewellery is inherited.

Rules of keeping cash

There is also no limit to keeping cash at home, but one has to tell the source of the cash through which medium you have earned this money.

According to the new rules, it is necessary to tell the source of the cash kept in the house. If someone is not able to give cash information, then a fine of up to 137 percent may have to be paid.

What does the new rule say?

According to the new rules in a financial year, if cash transactions are done on more than Rs 20 lakhs, one has to pay a fine.

According to the CBDT, if someone deposits Rs 20 lakh in cash in a year, then he/she will have to give details of their PAN and Aadhaar.

Doing so may attract a fine of up to Rs 20 lakh. At the same time, purchases cannot be made in cash for more than Rs 2 lakh.

Apart from this, if you donate in cash to someone, then its limit has also been fixed at Rs 2,000. As per Section 269-SS of the Income Tax Act 1961, no person can take a loan of more than 20 thousand in cash from any other person. In case of cash withdrawal of Rs 2 crore from the bank TDS will be levied.