Are you risking an 84% penalty by holding unaccounted cash at home? CA on rules that can bring you under scanner

Tighter income tax regulations have brought renewed scrutiny to individuals who keep large sums of cash at home without a clear, legitimate explanation. Under the revised rules, if the Income Tax Department discovers unexplained cash during a search, it can impose a steep 84% penalty, which includes tax, surcharge, cess, and additional penalties. Advertisement

According to Chartered Accountant Sarthak Ahuja, "The new income tax regulations will impose 84% tax on all the cash that they find lying at your place." The move is part of the government’s broader push to curb unaccounted money and increase financial transparency.

Property sale

Authorities are also tightening oversight on property-related transactions and other high-value cash receipts. Experts point out that accepting cash bey