how much cash can I deposit in bank accounts

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Talk-Of-The-Town
ANSH_
Hey people
We are purchasing a shop costing 20 lakhs
We have cash and want to deposit that in bank account for cheque issue purpose


How can I deposit in such a way it doesn't not attract tax or it department attention


I have 13 accounts
Can I deposit 49k in each of them?

Need your inputs in this

@third.i.financial.advisors
@flash007

Kindly tag relevant dimers having knowledge in that department
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Deal Cadet Deal Cadet
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If this is all legal money you can deposit any amount of money

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Deal Cadet Deal Cadet
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If this is all legal money you can deposit any amount of money

Commentator Commentator
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exactly.. depositing more than 10L gets the mandatory notification to IT dept by banks but in general IT dept is aware of every rupee you have/where ever you have mentioned your PAN/Aadhaar

so more than 10L would initiate the notices from IT dept to show the source of income and it would be safe if you are filing your returns even if your income is less than 2.5L per year (to be on a safer side)


What Will Happen if You Cross the Cash Deposit Limit in Savings Account per Month?

If you cross the cash deposit limit in savings account, the banks are required to report the excess transactions to the Income Tax Department. But, they will not be taxed outright. Here are certain things that you must keep in mind regarding the cash deposit limit in savings account -

  • Crossing the cash deposit limit in savings account per day of Rs.2.5 Lakh for general and Rs.5 Lakh by senior citizens is considered a large deposit
  • The IT department will contact you through Email or SMS to furnish details about the source of income
  • To deposit more than Rs.50,000, you will have to show your PAN card details if it is not already provided to the bank
  • On being unable to explain the origin of the income, it is well within the rights of the IT department to serve notices under Section 68 of the IT Act
  • If you still cannot verify the income sources, a 60% tax, 25% surcharge, and 4% cess is imposed
  • The IT department also prescribes penalties if you end up receiving Rs.2 Lakh or more as a cash deposit in a financial year

https://moneyview.in/savings-account/cash-depos....
Generous Generous
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13 accounts , but same PAN naa ?

Talk-Of-The-Town Talk-Of-The-Town
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Hn

Deal Cadet Deal Cadet
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I think you can deposit up to 50 lakhs in a current account within a fiscal year without notifying the IT department. For savings account however the limit is 10 lakhs in a financial year above which the bank is obligated to report the IT authority. Confirm with a professional CA though if you don't want to land in some trouble. Hopefully, the cash is legal.

Benevolent Benevolent
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one dimer was in same scenario sometime back but he had cash around 50 lacs or more i think to manage

Helpful Helpful
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same pan card right!

are you filing income tax returns properly..

Deal Cadet Deal Cadet
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Consulting an experienced CA should be considered.

Deal Cadet Deal Cadet
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use close relatives account like father , mother ,brother , sister and transfer it to your own account and few in your own account... That will escape Bank reporting to Income tax department  

Helpful Helpful
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The cash deposit limit in a savings account as per income tax regulations in India is ₹10 lakh during a financial year. If you deposit more than this amount, it may attract the attention of tax authorities. For those holding current accounts, this reporting threshold is elevated to ₹50 lakh.


Additionally, it’s important to note that you can deposit a maximum of ₹1 lakh per day in your savings bank account. However, the limit can exceed up to ₹2.5 lakh in a day if it’s done once in a while. As far as the annual limit is concerned, the maximum cash that can be deposited in a savings account is ₹10 lakh.



Multiple Accounts:

You mentioned having 13 accounts. While it’s technically possible to deposit ₹49,000 in each account, you should be cautious. The Income Tax Department monitors transactions, and if they notice a pattern of frequent deposits just below the reporting threshold, it might raise suspicion as accounts could be different but all of them are linked with PAN.

Deal Subedar Deal Subedar
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What is considered as cash deposit?

Is it physical cash being deposited via bank, ATm by a person into an account? This is clearly a cash deposit

But,

1.will an online transfer from person A to  person B considered as cash deposit, into person B's account? Will these limits apply in this case?



2. Also the limit is 10L but 2L deposits can be penalised as well? Anyone have any knowledge about this?


3. Will paying a credit card 2L in a year attract scrutiny?

Doubts for a long time.

@arundass007378
@third.i.financial.advisors @bikidas2060  
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Deal Lieutenant Deal Lieutenant
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Deposit in same account from where you have withdrawn it earlier. Then issue cheque 

Deal Cadet Deal Cadet
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When people have large sum of cash, it's mostly untaxed income. Not necessarily illegal income but hidden from tax.

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