Income Tax Notice: For bank customers, their bank account is a safe place where their money is safe, and they also get the benefit of interest on that amount. Apart from this, if you want to take advantage of any government scheme, invest in bank FD or any other scheme or do UPI transaction, no work can be done without a bank account. In India, a person can also run multiple bank accounts simultaneously, there is no rule about this. But do you know how much money can be kept in a bank account and how much cash can a person deposit at one time? Is there any limit to this? Know about this 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. But if the amount deposited in your account is more and it comes under the purview of income tax, then you will have to tell the source of that income. Apart from this, there is a limit for depositing and withdrawing cash by going to the bank branch. But through cheque or online medium, you can deposit any amount from Rs 1 to thousands, lakhs, crores in the savings 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. A person can deposit a maximum of Rs 10 lakh in cash in his account in a financial year. This limit is overall for taxpayers having one or more accounts.
If you cross this limit then you will be on the radar of the IT department
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 this income. If the person is unable to give satisfactory information about the source 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.
How much fine can the IT department charge
If a person deposits more than 10 lakh cash in the bank and is unable to provide any information about the source of that income, then 60 percent tax, 25 percent surcharge, and 4 percent cess can be levied on that deposit amount. However, this does not mean that you cannot make a cash transaction of more than 10 lakh. If you have proof of this income, then you can deposit cash without any worry. However, from the point of view 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.
