Mumbai: In India, there is no limit on how much money you can keep in a savings bank account. Cash deposit refers to either depositing money manually into your account or through modes like money transfer or ATM.
The cash deposit limit in savings account as per income tax is Rs.10 Lakh during a financial year. All banks or financial institutions must declare large cash deposits according to Section 114B of the Income Tax Act, 1962.
Cash deposits are monitored by the Income Tax department (ITD), and the cash deposit limit in savings account refers to the amount deposited by each person. It is calculated taking into account all the bank accounts of an individual.
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Cash deposits in one or more of a person’s accounts totaling ten lakh rupees or more within a fiscal year must be reported to the ITD. The Post Master General and banking institutions or cooperative banks are the designated reporting entities for such cash deposits.
Any fixed deposits made into accounts that exceed Rs 10 lakhs within a fiscal year must be reported to the ITD. If the total amount placed in one or more fixed deposits surpasses the designated limitations, banks must report the transactions.
Reporting is also required for cash payments or receipts for sales of goods or services that exceed Rs 2 lakh. These transactions must be reported by companies liable for audit under a specific tax section (Section 44AB).
Any credit card payments made over Rs. 10 lakh annually may be monitored. These transactions are reported by banks and cooperative banks.
Any property transaction involving the purchase, sale, or transfer of at least Rs. 30 lahks must be reported to avoid fines and inquiries by tax authorities. These transactions must be reported by registrars or sub-registrars of real estate transactions.
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