Savings Account: Depositing more cash than this limit in your bank account at one time will be costly, know the income tax rules..

Often many people have this question in their mind can any amount of money be deposited in a bank account at any time? Especially when someone has received a large amount in cash in a wedding, property deal, business payment, or any emergency.

But if you deposit more cash than a fixed limit in the bank, then the Income Tax Department may notify you. To avoid unwanted troubles, it is necessary to understand the rules of the bank for depositing cash, especially when such big transactions are involved.

Limit of depositing cash in a savings account-
If you deposit Rs 10 lakh or more in cash in your savings account in a financial year (April 1 to March 31), then the bank will give its information to the Income Tax Department. This rule applies to cash deposits of more than Rs 10 lakh, and the bank must report this transaction to the tax department. (Savings Accounts Cash Deposit Limit)

Separate limit for current account-

This limit (Current Account Limit) is higher in the current account i.e. business account. If ₹ 50 lakh 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 Rs 2 lakh or Rs 5 lakh at once. But if your amount is large and your income or source is not clear, then the tax department can question it.

PAN is necessary for depositing more than 2 lakh-
If you deposit Rs 2 lakh or more in cash in the bank at one time, then you are required to provide a 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-
The Income Tax Department can send you a notice for depositing more cash than the prescribed limit and not disclosing its source. This can lead to a fine on you and may increase your problems. To avoid these problems, use digital payments as much as possible. If you do cash transactions, keep a complete record of it. It is very important to keep these rules in mind while depositing a large amount of cash.

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