Many people fear that they cannot carry a lot of cash with them and think that it is legally not correct to carry a lot of cash or cash equivalent items. Yes, indeed. It is totally unsafe and not an intelligent decision to carry a lot of cash (of any currency) when we are travelling within a country or outside the country or even if we are at home. For instance, there is no restriction to the amount of money that can be possessed by a person, while travelling to another country. Before arriving to US or moving out of US, we surely need to inform
the custom officials of the amount of cash that is kept in our
possession, if the amount is greater than 10 000 dollars.
When we possess very little cash, it is not required and it is legal to
carry any amount of cash.
If we are traveling in domestic flights, there is no restriction to the
amount of cash that can be carried.
There is something called the limit of liability, which is 1250 dollars
and this includes cash, jewelry as well as other possessions.
Any bank transaction that is performed, involving more than 10 000
dollars will be informed to IRS and hence we need not withdraw
more than 10 000 dollars.
There is no upper limitation slab. But once we carry more than
10 000 dollars, we have to report this to the customs.
We must be answerable to the questions posed by the customs on
how we got the amount and whether tax is paid properly and so on.
We must be able o provide proof for the source of amount.
A person travelling to India can carry 10 000 dollars in one year
and for one travel, a person can carry 2000 dollars cash.
When does the seizure of cash occur and how to avoid this?
At any point of time, when one carries more than 10 000 dollars in
terms of cash or monetary instruments, without reporting,
then it will be confiscated.
What is included in the monetary instruments?
Coins or cash of any foreign country or US, checks traveler’s check
or personal check, some money orders and other investment
securities will be included in the monetary instruments.
If the worth of the instruments is more than 10 000 dollars
(all put together), it can be seized if it is concealed and not reported to the customs.