Income Tax Notice: Often many people have this question in their mind that how much cash can they deposit in their savings account and current account? In such a situation, let us tell you that if you deposit more cash than a fixed limit in the bank, then the Income Tax Department can keep an eye on you-
Income Tax Notice Often many people have this question in their minds that can any amount of money be deposited in the bank account at any time? Especially when someone has received a large amount in cash due to marriage, property deal, business payment or any emergency.
But if you deposit more cash than a certain limit in the bank, then the Income Tax Department can keep an eye on you. Therefore, it is important to understand the cash deposit rules of the bank so that you do not face any problem in future.
Limit of depositing cash in savings account-
If you are depositing money in a savings account, then a report is sent to the Income Tax Department if you deposit more than Rs 10 lakh cash in the entire financial year (from April 1 to March 31). That is, if you deposit Rs 10 lakh or more in cash in a savings account in a year, then the bank will share this information with the tax department.
Separate limit for current account-
There is no prescribed upper limit for cash deposits in a current account (i.e. business account), but annual cash deposits of ₹50 lakh or more come under the scrutiny of the Income Tax Department. If you are a businessman and regularly deposit large amounts of cash, it is important to keep a detailed record of all transactions and preserve the relevant evidence. This will help you respond to any income tax-related queries in the future.
How much cash can you deposit 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 big and your income or source is not clear, then the tax department can question.
PAN is necessary for depositing more than 2 lakhs-
If you deposit Rs 2 lakh or more in cash in a bank at one time, then you have to give PAN number. Without PAN, the bank does not accept cash amount of more than Rs 2 lakh.
Know the rules or else you may have to pay a fine-
If you deposit cash more than the prescribed limit and are unable to tell its source, then the Income Tax Department can send you a notice. In such a situation, you may be fined and your trouble may increase. Therefore, use digital payment as much as possible. If you do cash transactions, then keep a record of it. It is important to keep these rules in mind before depositing large amounts of cash.
