Cash deposit limits: Income Tax rules, Penalties and Savings account guidelines
There are limits on depositing money into savings accounts. The Income Tax Department has issued some important rules. Penalties will be imposed if these rules are exceeded.
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FollowCash Deposit Limits
Saving money is important. There is a limit on depositing money into savings accounts as per Income Tax rules. Up to ₹1 lakh can be deposited per day.
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Financial Transactions
If you deposit more than Rs 10 lakh in a year, you must inform the Income Tax Department. The annual limit for current accounts is Rs 50 lakh. Transactions exceeding the limit must be reported.
Income Tax
Annual limit of Rs 10 lakh in savings accounts. A PAN card is required for deposits exceeding Rs 50,000. Up to Rs 2.5 lakh can be deposited at once. Current accounts have a limit of Rs 50 lakh.
Daily Cash Limit
The monthly limit for large transactions can be Rs 1-2 crore. 2% TDS is deducted if more than Rs 1 crore is withdrawn. 2% TDS for withdrawals exceeding Rs 20 lakh, 5% TDS for Rs 1 crore.
Income Tax Department
A penalty is imposed if Rs 2 lakh or more is deposited in a year. TDS applies to withdrawals, but not penalties. Follow the rules, avoid penalties.
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