A viral video falsely claims a new Income Tax Act will introduce penalties for holding excess cash from 2026. The government's Press Information Bureau (PIB) has fact-checked this, stating the claim is misleading.
A video doing the rounds on social media has left many taxpayers worried. It claims that from April 1, 2026, the Income Tax Act, 2025 will introduce fresh taxes, strict penalties and even reporting rules for people who keep "too much cash" at home. But the truth is far less dramatic.
Government Steps In to Stop the Rumours
The Press Information Bureau's Fact Check unit has dismissed the claim as misleading. According to PIB, the new Income Tax Act does not propose any new tax, penalty or reporting requirement related to cash transactions or money kept at home.
What the New Income Tax Act Is Actually About
PIB clarified that the 2025 Act is meant only to simplify the existing tax law, remove confusion and improve consistency across sections. It is not designed to change tax policy or bring in harsh new rules compared to the old Income Tax Act of 1961.
In simple terms: no surprise penalties, no secret cash limits, and no new compliance burden.
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Where Taxpayers Should Check the Facts
Instead of trusting viral videos, taxpayers are advised to refer to the official FAQs on the Income Tax Department's portal. The government has also provided a section-wise mapping tool to help people understand how the old provisions align with the new law.
