Cash Depositing Limit In Saving Account: The majority of banking customers in India deposit money in savings accounts to safeguard their cash or funds.
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But do you know how much money you can keep in your savings account or How much money should you have in your savings account in a financial year? You need to be aware of the upper cash limit in saving accounts because it is possible that if the limit exceeds the financial year, then you may receive an income tax notice.
Mode of cash deposits in savings account
Depositing cash means depositing money into your bank account manually or through methods like money transfer or ATM. People often deposit money in banks to make transactions or to keep it safe. You can withdraw the money after making the deposit, which is still called a cash deposit.
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What does the rule say on maximum deposits in savings accounts?
According to the Income Tax Department, the limit for cash deposits in a savings account is Rs 10 lakh in a financial year. All banks or financial institutions must inform the Income Tax Department about large cash deposits as per Section 114B of the Income Tax Act 1962. The department keeps an eye on every savings account to see whether the money deposited exceeds the decided limit or not.
How Does Transaction Calculated?
The cash deposited in a financial year is calculated taking into account all the accounts of the person.
According to the rules, if you keep more than the limit in your savings account, then it will be subject to income tax. In case of cash exceeding the prescribed limit, you will have to pay income tax.
