Cash Deposit Limit: Income Tax Department will take action if you deposit more cash than this limit in your bank account, know the rules..

Savings Account Cash Deposit Limit: Often, people think that they can deposit any amount of cash in the bank account at any time, especially in case of large amounts received in marriage, property deals, or emergencies. 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 savings account-

If you deposit more than Rs 10 lakh in cash in your savings account, then be careful! The bank has to give information about the total cash deposit of Rs 10 lakh or more in the financial year (April 1 to March 31) to the Income Tax Department. This means that if you deposit more cash than this limit in a year, then the bank will share this information with the tax department.

Different limit for current account-

This limit is higher in the current account, i.e., business account. If 50 lakh rupees 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 deposit an amount of up to 2 lakh or 5 lakh rupees at once. But if your amount is large and your income or source is not clear, then the income tax department can question you.

PAN is necessary for depositing more than 2 lakh.
If you deposit 2 lakh rupees or more cash in the bank at one time, then you are required to provide PAN number. Without PAN, the bank does not accept cash amounts more than Rs 2 lakh.

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 payment 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 keep these rules in mind.

If you deposit cash more than the prescribed limit and are unable to tell its source, then the Income Tax Department can send a notice, which can lead to a fine and your problems can increase. In such a case, use digital payment as much as possible. If you do cash transactions, then keep a record of it.

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