Cash Deposit Limit: New rules by Income Tax Department
You can keep as much money as you want in your savings account. However, certain rules have been made regarding cash. As per the rules, if you deposit cash above the limit, the bank has to inform the Income Tax Department.
FollowIn today's era, a savings bank account is essential for everyone. A bank account is essential to avail of all the government schemes. Without it, digital transactions cannot be done. There is no restriction on opening a bank account in India. Due to this, every person has two or more bank accounts. The bank also gives interest from time to time on this deposit amount. As per the rules, it is necessary to maintain a minimum balance in all accounts except zero-balance accounts. Otherwise, the bank charges you a penalty.
But here you will know how much maximum cash you can keep in a savings account. You can keep as much money as you want in your savings account. There is no limit to this. But if the amount deposited in your account is high and comes under the income tax limit, you have to tell the source of that income. Apart from this, there is a limit to going to the bank branch and depositing and withdrawing cash. But through ATM or online, any amount from Rs 1 to thousand lakh crore can be deposited in the savings account.
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The rule states that if you deposit cash of 50,000 or more in the bank, you must provide your PAN number. Up to Rs 1, lakh can be deposited in cash in a day. Also, if you do not continuously deposit cash in your account, this limit can be up to Rs 2.50 lakh. Apart from this, a person can deposit a maximum of Rs 10 lakh in cash in his account in a financial year. This limit is aggregated for taxpayers with one or more accounts. If a person deposits more than Rs 10 lakh in cash in a financial year, the bank must inform the Income Tax Department.
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Also, in such a situation, it is advised that the person should tell the source of this income. If the person cannot provide satisfactory information in the income tax return, he can come under the radar of the Income Tax Department and be investigated. If caught, a heavy fine will be imposed.
If the person does not know the source of income, then 60 per cent tax, 25 per cent surcharge and 4 per cent cess will be levied on the deposited amount. However, it does not mean cash transactions above 10 lakhs cannot be done. Income tax rules say that if you have proof of this income, then you can deposit the money without worry.
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