Have you ever wondered how much cash you can keep in your savings account without triggering an Income Tax notice? This is a common concern for many individuals. According to income tax rules, the total cash deposit or withdrawal in a savings account during one financial year should not exceed Rs 10 lakh. Exceeding this limit can attract scrutiny from the Income Tax Department.
Daily cash transaction limits
Another question often raised is the limit on cash transactions in a single day. Under Section 269ST of the Income Tax Act, an individual cannot receive more than Rs 2 lakh in cash in a single transaction or linked transactions on a given day. If the total cash deposits across all your savings accounts exceed Rs 10 lakh in a financial year, banks are required to report this to the Income Tax Department, even if the deposits are spread across multiple accounts.
High-value transactions: What happens if you exceed the limit?
If you deposit more than Rs 10 lakh in cash during a financial year, it will be considered a high-value transaction. Under Section 114B of the Income Tax Act, banks and financial institutions must inform the Income Tax Department about such deposits. Additionally, if you deposit more than Rs 50,000 in cash in a single day, you must provide your PAN number. If you don’t have a PAN, you will need to submit Form 60/61 as an alternative. Read More
This article is referenced from
https://www.indiatvnews.com/
Views: 4.4k
