Savings account cash deposit limits: What you need to know about taxation in India?

Savings accounts have no deposit limit, but large deposits are subject to income tax rules. PAN card is mandatory for deposits exceeding Rs 50,000. The Income Tax Department is notified of deposits exceeding Rs 10 Lakhs in a financial year.

Income Tax Notice

You can keep any amount of money in your savings account. But some rules have been made for money. According to the rules, if you deposit money above the limit, the bank has to inform the Income Tax Department. In the present times, it is necessary to have a bank account to avail all the schemes of the government, without it digital transactions cannot be done.

Savings Account

Your money is also safe in the savings account. Also, the bank gives interest on this deposit amount from time to time. According to the rules, it is necessary to maintain a minimum balance in all accounts except zero balance accounts. Otherwise the bank fines you. According to the Income Tax Department rules, you can keep as much money as you want in your savings account.

Income Tax Department

Apart from this, there is a limit for depositing and withdrawing money by going to the bank branch. But through check or online medium, any amount from Rs 1 to thousand, lakh, crores can be deposited in the savings account. The rule states that if you deposit 50,000 or more cash in the bank, you have to provide your PAN number along with it.

Cash Limit

This limit is overall for taxpayers having one or more accounts. If a person deposits more than Rs 10 lakh in cash in a financial year, the bank has to inform the Income Tax Department about it. In such a situation, the person has to tell the source of this income.

Income Tax

However, it does not mean that cash transactions of more than 10 lakhs cannot be done. If you have proof of this income, you can deposit the money without any worries. However, from the point of view of benefit, instead of keeping so much money in your savings account, it is better to convert that amount into FD or invest it somewhere else, where you can get better returns.