Cash Deposit Limit in Bank: How much cash can you withdraw from a bank at one time? Many people know this, but very few know how much cash can be deposited in a bank at one time.
Today, we’ll tell you about the cash deposit limit in a bank, which you should be aware of. Sometimes, depositing cash beyond the limit can bring you under the scrutiny of the Income Tax Department. Let’s find out why.
How much cash can you deposit in a savings account?
If you have a savings account and have deposited more than Rs 10 lakh in your bank account between April 1 and March 31, then you will have to share the source of your money with the Income Tax Department.
Additionally, if you deposit cash in excess of ₹50 lakh into your current account, your account will come under the scrutiny of the Income Tax Department. Therefore, it’s important to always keep a complete record of every transaction.
PAN card is mandatory for cash deposits above Rs 2 lakh.
If you deposit more than ₹2 lakh in either your savings or current account, you need a PAN card. The bank won’t accept these deposits without a PAN card. However, if the amount exceeds ₹10 lakh, your file is sent to the Income Tax Department.
When is the penalty imposed?
If you deposit cash in your bank account beyond the limit, your file is sent to the Income Tax Department. The Income Tax Department then sends you a notice asking for the source of the money. If you fail to disclose the source, the Income Tax Department may impose a fine. To avoid penalties, always keep a record of your cash.
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