How much cash can you legally keep at home in India? (2024)

FAQs

How much cash can you legally keep at home 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 or in office, provided it is generated from a source and declared in the ITR and books of accounts.

Manmeet Kaur, Partner, Karanjawala & Co, says that there is no set legal restriction on the quantity of cash you can retain at home in India. But it's crucial to make sure the money comes from a reliable source and is reported in your income tax returns (ITR) and, if necessary, your books of accounts.

By law, if the amount is US$5,000 or more in coins and notes, or US$10,000 or more in coins, notes, and traveller's cheques¹, you need to declare it.

As per the Reserve Bank of India (RBI), Indian residents are allowed to carry cash up to Rs. 25,000 (approx. $350) while travelling within the country. These guidelines establish legal limits on how much cash can be carried on domestic flights for both residents and non-residents while entering or leaving the country.

In addition to keeping funds in a bank account, you should also keep between $100 and $300 cash in your wallet and about $1,000 in a safe at home for unexpected expenses. Everything starts with your budget. If you don't budget correctly, you don't know how much you need to keep in your bank account.

The answer to your question is yes, you can withdraw Rs. 10 lakh in cash from your bank account in India.

Under Section 269ST of the Income Tax Act, no person is allowed to receive an amount of Rs 2 lakh or more in cash: In aggregate from a person in a day.

Conclusion. Bringing US dollars or other foreign currency to India involves adhering to the regulations set forth by the Reserve Bank of India. While there are no restrictions on the amount of currency you can bring, any sum exceeding US $5,000 must be declared to customs authorities using a Currency Declaration Form.

Members of a family residing in one household entering the United States that submit a joint or family declaration must declare if the members are collectively carrying currency or monetary instruments in a combined amount over $10,000 on their Customs Declaration Form (CBP Form 6059B).

The Government of India and the RBI has prescribed the limit for possession of foreign currency in India. It is limited to US$2000 and not only to American dollars but also to other foreign currencies of different countries.

How much cash can you legally carry on a domestic flight in India? ›

The Government of India has passed guidelines not to carry cash more than 2lakhs in general. It will be illegal to carry cash even it is taxable. So you can carry cash upto 2lakhs in domestic flights in India. You need to show income proof in demand.

The government has no regulations on the amount of money you can legally keep in your house or even the amount of money you can legally own overall. Just, the problem with keeping so much money in one place (likely in the form of cash) — it's very vulnerable to being lost.

Traveling with Cash

If you're flying internationally with more than $10,000, however, you'll have to declare the amount on a customs declaration form because of reporting requirements. Other than that, assuming customs approves your luggage, you can carry as much cash as you want.

It's a good idea to keep enough cash at home to cover two months' worth of basic necessities, some experts recommend. A locked, waterproof and fireproof safe can help protect your cash and other valuables from fire, flood or theft.

“Emergency funds should not be held at your home,” Miura added. “They should be stored in a high-yield savings account of your choice.” McCarty framed it more in terms of a ratio: “In terms of amount, don't let your cash exceed 10% of your overall emergency fund and/or $10,000.”

The money can be lost or stolen.

For example, a dishonest worker in your home may find the cash and steal it, household pests might chew on the bills and render them unusable, or your cash-strapped teen might decide the money is there to pay for their own entertainment expenses.

I always carry enough cash that can get me back home and and atleast 2 meals, excess if I am travelling to a far away place. Around 2k in cash including change + credit cards.

A resident of India, who has gone out of India on a temporary visit may bring into India at the time of his return from any place outside India (other than Nepal and Bhutan), currency notes of Government of India and Reserve Bank of India notes up to an amount not exceeding Rs. 25,000.

However, any gift to a person who is not a relative* will be taxable for the recipient if the aggregate amount is greater than ₹50,000 as per Section 56(2)(x) of the Income Tax Act, 1961.

Import of Indian Currency is prohibited. However, in the case of passengers normally resident in India who are returning from a visit abroad, import of Indian Currency upto Rs. Rs. 25,000/- is allowed.