Savings Account Cash Deposit: Many people know the cash withdrawal limit from the bank, but very few understand the cash deposit limit. This lack of knowledge could lead to a notice from the Income Tax Department.
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Cash Deposit Limit in Bank: How much cash can you withdraw from a bank at a time? Many people know this, but very few know how much cash can be deposited in a bank at a time. Today, we’re going to tell you about the cash deposit limit in a bank, which you should be aware of. Sometimes, depositing cash beyond the limit can lead to scrutiny by the Income Tax Department. Let’s find out why.
How much cash can you deposit in a savings account?
If you have a savings account and have deposited more than ₹10 lakh in your bank account between April 1 and March 31, you will be required to share the source of your funds with the Income Tax Department.
Additionally, if you deposit cash exceeding ₹50 lakh into your current account, your account will come under the scrutiny of the Income Tax Department. Therefore, it’s important to always keep a complete record of every transaction.
A PAN card is mandatory for cash deposits exceeding ₹2 lakh.
If you deposit more than ₹2 lakh into either your savings or current account, you need a PAN card. Banks will not accept these deposits without a PAN card. However, if the amount exceeds ₹10 lakh, your file is sent to the Income Tax Department.
When is the penalty imposed?
If you deposit cash in excess of the limit in your bank account, your file is sent to the Income Tax Department. The Income Tax Department then sends you a notice asking for the source of the money. If you fail to disclose the source, the Income Tax Department may impose a penalty. To avoid penalties, always keep a record of your cash.
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