Cash Deposit Rules: Today everyone has a savings account in the bank. Because without an account you will not be able to do any kind of online transaction. Along with this, the money kept in the bank is considered more secure. But you will be able to keep only up to a fixed amount in the savings account. Let’s know what are the rules regarding this?
Everyone has a savings account in the bank. Because without an account you will not be able to do any kind of online transaction. Along with this, the money kept in the bank is considered more secure.
Whether it is an individual, a small business or a professional person, everyone has one or more savings accounts. But even in a savings account, you can keep cash only up to a limit.
If more cash is kept than the limit set by RBI, then you may be fined heavily. Along with this, there is also a risk of income tax department for keeping more amount than the limit.
How much money can you keep in the account?
According to the rule, you can keep any amount of money in your savings account. No limit has been made regarding this. But if the amount deposited in your account is more and it comes under the purview of income tax, then you will have to tell the source of that income. Apart from this, there is a limit for depositing cash and withdrawing cash by going to the bank branch. But through cheque or online medium, you can deposit any amount from Rs. 1 to thousands, lakhs, crores in the savings account.
What is the limit for depositing money in a savings account?
The rule says that if you deposit Rs. 50,000 or more in cash in the bank, then you will have to provide your PAN number along with it. You can deposit up to Rs. 1 lakh in cash in a day. Also, if you do not deposit cash in your account regularly, then this limit can be up to Rs. 2.50 lakh. In a financial year, a person can deposit a maximum of Rs. 10 lakh in cash in his account. But if this limit exceeds Rs 10 lakh, then you will have to inform the Reserve Bank of India or the Income Tax Department.
You will have to give this information under AIR (Annual Information Return). This does not mean that you will have to pay tax, but if this amount is more than the income, then you will have to be accountable for it.
Apart from this, the limit in the current savings account is Rs 50 lakh.
PAN number is required in these transactions
If a person makes a transaction of 50 thousand or more, then a PAN number (permanent account number) is required for this. Or if the transaction amount exceeds the fixed period of one year, then also a PAN number is required.
In such a situation, a PAN card is needed so that the amount transacted from the account can be checked. Although no tax will have to be paid in this, but you will have to inform the tax department about this amount.
If you cross this limit, you will be on the radar of the IT department.
If a person deposits more than Rs. 10 lakh in cash in a financial year in a bank account, then the bank has to inform the Income Tax Department about it. In such a case, the person has to tell the source of this income. If that person is not able to give satisfactory information about the source in the income tax return, then he can come under the radar of the income tax department and an investigation can be conducted against him. If caught, a heavy fine can be imposed.
How much fine can the IT department charge
If a person deposits more than 10 lakh cash in the bank and is not able to give any information about the source of that income, then 60 percent tax, 25 percent surcharge, and 4 percent cess can be levied on that deposit amount. However, this does not mean that you cannot make a cash transaction of more than 10 lakh. If you have proof of this income, then you can deposit cash without any worry. However, from the point of view of benefit, instead of keeping so much money in your savings account, it is better to convert that amount into FD or invest it in some other place, from where you can get better returns.
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