Income Tax department will send notice if you deposit this much cash in your bank account in 1 year

Income tax notice: Nowadays, most people have a savings account. They transact money through it. Many times you also deposit cash in the bank. But do you know that there are some rules regarding cash deposit in the bank? If you deposit more than a limit of cash in a bank account in a financial year, then the Income Tax Department can question you. Know about it here.

How much money can you keep in your account?

According to the rules, you can keep any amount of money in your savings account. There is no limit for this. You can deposit any amount of money in the account through cheque. The limit is for depositing cash in the account.

How much cash can you deposit?

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. You can deposit up to Rs 10 lakh in a financial year. But if you deposit more than this limit in a financial year, then you have to tell the IT department about the source of that income.

This limit is for multiple accounts combined

If you do not do this, this limit for depositing cash in the account is for a single bank account. If you have this limit, then it is for one or more accounts as a whole.

What will happen if the limit is crossed

If a person deposits more than Rs 10 lakh in cash in a bank account in a financial year, then the bank has to inform the Income Tax Department about it. In such a case, the person has to tell the source of income. If the person is unable to give satisfactory information about the source of income 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.

It is not that you can make a cash transaction of more than Rs 10 lakh

However, this does not mean that you cannot make a cash transaction of more than 10 lakhs. If you have proof of this income, then you can deposit cash without any worry. However, from the perspective of benefits, 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.

The post Income Tax department will send notice if you deposit this much cash in your bank account in 1 year first appeared on informalnewz.

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