Cash Deposit Limit : There is a limit regarding cash deposit in savings accounts. If it is exceeded, there is a possibility of getting notices from the Income Tax Department. And how much is this limit? How much tax will be charged if the limit is exceeded? Find out the details in the following article.
Banking services are indispensable for everyone these days. While some banks offer zero balance accounts, some banks offer savings account services with minimum balance. But everyone should be aware about the cash deposit limit in the bank account. Otherwise notices will have to be obtained from Income Tax Department. There will also be a situation to pay the penalty.
What is the cash deposit limit?
Cash deposit limit for a financial year (April – March) in General Savings Account is Rs. 10 lakhs. If Rs. Banks will immediately inform the Income Tax Department if transactions exceed 10 lakhs. Then the IT Department will be able to issue notices to you. Rs. For deposits exceeding 10 lakhs, it also asks for proof of where the money came from. For current accounts, for the financial year Rs. There is a limit of 50 lakhs.
According to Section 114B of the Income Tax Act 1962, every bank shall pay Rs. The details of the accounts where the transactions are more than 10 lakhs have to be provided to the IT department. How many bank accounts does the customer have and the total amount for the financial year is Rs. Deposit limit is up to 10 lakhs.
How much can be deposited per day?
Usually in savings accounts Rs. Can deposit up to one lakh. If you don’t transact for many days then Rs. 2.5 lakh can be deposited. But in the financial year as a whole Rs. Not exceeding 10 lakhs. Rs. PAN card has to be attached every time deposit is more than 50 thousand.
Rs. If you make a cash deposit of more than 10 lakhs, you have to submit proofs to the Income Tax Department. Otherwise, along with 60 percent tax, 25 percent surcharge and 4 percent cess will have to be paid as penalty. That means Rs. Above 10 lakhs, 89% of the money you deposit will be lost to tax. But if the evidence is included, there is no need to pay any penalty.
How much money can there be?
Savings account can have any amount of money. There is no limit to this. But in the financial year Rs. If depositing more than 10 lakhs, evidence should be attached.
Section 194n
As per Section 194N of the Income Tax Act in a financial year Rs. 2% TDS will be applicable if cash is withdrawn beyond Rs. In case of non-filing of income tax returns Rs. If you withdraw more than 20 lakhs, there will be 2% TDS. The same Rs. 5% TDS is applicable for them if it exceeds Rs.
So those who have savings accounts should avoid getting caught by the Income Tax Department in a single financial year. Keep in mind that cash deposits should not exceed 10 lakhs. Evidence should be provided if the limit is exceeded.
