Cash Deposit Limit in Savings Account: If you deposit more cash than the prescribed limit and are unable to tell its source, then the Income Tax Department can send you a notice. In such a situation, a fine can also be imposed and your problems can increase.
People often have this question in their mind that can any amount of money be deposited in a bank account at any time? Especially when someone has received a large amount in cash in a wedding, property deal, business payment or any emergency. But if you deposit more cash than a fixed limit in the bank, then the Income Tax Department can keep an eye on you. That is why it is important that you understand the cash deposit rules of the bank properly.
Limit of depositing cash in a savings account
If you are depositing money in a savings account, then a report is sent to the Income Tax Department on depositing more than ₹ 10 lakh cash in the entire financial year (from April 1 to March 31). That is, if you deposit ₹ 10 lakh or more in cash in a savings account in a year, then the bank will share this information with the tax department.
Separate limit for current account
This limit is higher in current account i.e. business account. If ₹ 50 lakh or more cash is deposited in a year, then it also comes under the purview of income tax. In such a situation, if you are a businessman and often deposit large amounts in cash, then keep a complete record of the transaction and keep the proof safe.
How much cash can be deposited at once?
There is no fixed limit for depositing cash at once by the bank. If you want, you can also deposit an amount of up to Rs 2 lakh or 5 lakh at once. But if your amount is large and your income or source is not clear, then the tax department can question.
PAN is necessary for depositing more than 2 lakhs
If you deposit 2 lakh rupees or more in cash in the bank at one time, then you have to provide PAN number. Without PAN, the bank does not accept cash amount of more than 2 lakh rupees.
In simple language, it is necessary to provide PAN while depositing more than 2 lakh rupees in cash, a report is sent to the Income Tax Department on depositing more than 10 lakh rupees in a year in a savings account and more than 50 lakh rupees in a current account. To avoid this, keep a complete record of the transaction.
Know the rules or else you may have to pay a fine
If you deposit more cash than the prescribed limit and are unable to tell its source, then the Income Tax Department can send you a notice. In such a case, a fine can also be imposed and your problems can increase. Therefore, use digital payments as much as possible and if you do cash transactions, then keep a record of it. If you are also thinking of depositing a large amount in cash, then definitely keep these rules in mind.
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