Often people have this question in their mind can any amount of money be deposited in a bank account at any time? Especially when someone has received a large amount in cash in a wedding, property deal, business payment, or any emergency. But if you deposit more cash than a fixed limit in the bank, then the Income Tax Department can keep an eye on you. That is why you must understand the cash deposit rules of the bank properly.

Limit for depositing cash in a savings account.
If you are depositing money in a savings account, then a report is sent to the Income Tax Department if you deposit more than ₹ 10 lakh cash in the entire financial year (from 1 April to 31 March). That is, if you deposit ₹ 10 lakh or more cash in a savings account (Savings Accounts Cash Deposit Limit) in a year, then the bank will share this information with the tax department.

Separate limit for current account
This limit (Current Account Limit) is higher in the current account i.e. business account. If ₹50 lakh or more cash is deposited in a year, then it also comes under the purview of income tax. In such a situation, if you are a businessman and often deposit large amounts in cash, then keep a complete record of the transaction and keep the proof safe.

How much cash can be deposited at once?

There is no fixed limit for depositing cash at once by the bank. If you want, you can deposit an amount of up to Rs 2 lakh or Rs 5 lakh at once. But if your amount is large and your income or source is not clear, then the tax department can question it.

PAN is necessary for depositing more than 2 lakh

If you deposit Rs 2 lakh or more in cash at once in the bank, then you have to provide a PAN number. Without PAN, the bank does not accept cash amounts of more than Rs 2 lakh.

In simple terms, it is necessary to provide PAN while depositing more than Rs 2 lakh in cash. A report is sent to the Income Tax Department on depositing more than Rs 10 lakh in a year in a savings account and more than Rs 50 lakh in a current account. To avoid this, keep a complete record of the transaction.

Know the rules or else you may have to pay a fine.
If you deposit more cash than the prescribed limit and are unable to tell its source, then the Income Tax Department can send you a notice. In such a case, a fine can also be imposed and your problems can increase. Therefore, use digital payments as much as possible and if you do cash transactions, then keep a record of it. If you are also thinking of depositing a large amount in cash, then keep these rules in mind.

Disclaimer: This content has been sourced and edited from NDTV India. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.