IT Rules Tighten: Unaccounted Cash, Large Withdrawals Face 84% Penalty

• New income tax rules in India impose up to an 84% penalty on unexplained cash found during searches, including surcharge and cess.
• Banks report cash withdrawals exceeding ₹10 lakh annually to the Income Tax Department; TDS is applied for withdrawals over ₹20 lakh.
• Penalties apply for receiving over ₹2 lakh cash from one person in a day or receiving over ₹20,000 cash for property sales.
• The government's aim is to reduce black money and bring all transactions into the official financial system.
• Individuals and businesses should maintain records, receipts, and proofs for all cash transactions to avoid penalties and potential seizure of funds.

Why It Matters: Unexplained cash now faces 84% penalty under new Income Tax rules.