India's Cash Tax Crackdown: Up to 84% Penalty for Unexplained Funds

• Unexplained cash found at home can attract a tax and penalty of up to 84% under new Indian tax rules.
• Banks report cash withdrawals exceeding Rs 10 Lakh annually from savings accounts to the tax department.
• A 100% penalty applies to cash transactions like property sales over Rs 20,000, cash loans, or collecting over Rs 2 Lakh cash from a customer in a day.
• The government aims to reduce unaccounted income and tracks digital and non-digital transactions.
• Taxpayers should maintain proper records and consider digital payments to avoid penalties.

Why It Matters: New tax rules mean severe penalties for unexplained cash, requiring careful financial handling.