For bank customers, their bank account is a safe place where their money is safe, and they also get the benefit of interest on that amount. Apart from this, if you want to take advantage of any government scheme, invest in bank FD or any other scheme or do UPI transaction, no work can be done without a bank account. In India, a person can also run multiple bank accounts simultaneously, there is no rule regarding this. But do you know how much money can be kept in a bank account and how much cash can a person deposit at a time? Is there any limit to this? Know about this here-
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.
How much cash can be deposited?
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. This limit is overall for taxpayers having one or more accounts.
Also Read-Â EPFO Withdrawal Rules: Important news! When will we have to pay 30% tax on withdrawal? know rules here
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.
Related Articles:-
SIP of Rs 5,000 will generate Rs 2.63 crore, know how much time it will take
