Every person in India has a savings account. Whether it is a working person or a business person, opening a savings account in a bank is the first step. It not only keeps your savings safe but also ensures your access to various financial services. But often people are confused about the cash deposit limit in this account and the rules related to it. In this blog we will know what is the maximum limit of cash deposit in a savings account, what are the rules related to it, what is the impact of tax rules on it, and what things you should keep in mind.
Limit on depositing money in savings account?
1. Daily cash Deposit Limit
Most banks do not have any fixed daily limit for depositing cash in savings account. But some bank branches have a limit on cash deposit, which is usually up to ₹ 1 lakh per day.
2. Monthly/Annual Cash Deposit Limit
According to the rules of the Indian Income Tax Department, if a person deposits ₹ 10 lakh or more in his savings account in any financial year (from April to March), then this information is automatically sent to the Income Tax Department.
Saving Account
According to the rules of Indian Income Tax Department, you can deposit a maximum of Rs 10 lakh in a savings account in a year.
Current Account
According to the rules of the Indian Income Tax Department, you can deposit a maximum of Rs 50 lakh in a current account in a financial year.
If you deposit cash beyond this limit, you may have to explain its source and disclose it in ITR (Income Tax Return).
cash deposit limit of banks
1. State Bank of India
Daily limit: ₹2 lakh (for branch deposits) CDM (Cash Deposit Machine): ₹49,900 per transaction (without PAN card)
2. HDFC Bank
You can deposit up to Rs 2 lakh per month in HDFC Bank. If the limit is exceeded, a charge of ₹2-₹5 is levied for every ₹100.
3. Axis Bank
Axis Bank Free Deposit Limit per Month: ₹2.5 Lakh or 10 transaction limit, beyond which a charge is levied.
4. ICICI Bank
ICICI Bank First 4 cash deposits per month are free, thereafter charges ₹150 per transaction.
Income Tax Department
The Income Tax Department obtains information from banks through ‘Annual Information Return (AIR)’. If a person deposits ₹10 lakh or more in cash in a year in a savings account, the concerned bank sends the information of that account to the Income Tax Department. If the person is unable to provide valid information about his income, an investigation may be conducted against him. This investigation is based on the following things:
Things to keep in mind before depositing cash
- Always keep proof of transaction receipt/payment slip
- Be clear about the source of large amount before depositing it
- File ITR regularly
- Keep PAN card updated
- Understand the bank’s cash deposit policy
- Avoid layering large amounts in small amounts repeatedly
- Do not give fake reasons for cash deposits
- Do not deposit more than ₹50,000 in cash without a PAN card
- Do not misuse other’s accounts
- Do not deposit cash by spreading it across multiple savings accounts in the same name
conclusion
Depositing money in a savings account is a normal process, but there is a certain limit that must be followed. The aim of the Indian government is to make cash transactions transparent so that black money can be prevented.
- Use Pan Card
- Follow Income tax rules
- Deposit cash from a valid source
- Understand Bank Limits and rules
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