Income Tax Notice: If you deposit a large amount of cash in your bank account, then you need to keep some rules in mind. According to the rules of the Income Tax Department, there is a limit for depositing cash in the bank, after crossing which the Income Tax Department is informed. If you ignore these rules or deposit a large amount of cash without information, then you may get an income tax notice.
On depositing more than 10 lakh cash
If you deposit more than Rs 10 lakh cash in any bank account in a financial year, then the bank informs the Income Tax Department about it. Keep an eye on big transactions and show it in ITR.
More than Rs 50 lakh cash deposited in current account
If you deposit more than Rs 50 lakh in cash in a year in your current account, the bank informs the Income Tax Department about it. It is mandatory to follow this rule especially for businessmen and companies.
TDS on cash withdrawal of more than Rs 1 crore
If you withdraw more than Rs 1 crore in cash from any bank account in a financial year, TDS is applicable. Those who make large cash withdrawals should keep this limit in mind.
Cash transactions above Rs 2 lakh are prohibited
There is a ban on cash transactions of more than Rs 2 lakh at a time, irrespective of the type of transaction. Violation of this rule can result in a notice and fine.
Deposit or withdrawal of more than Rs 50,000 without PAN
It is mandatory to provide PAN number while depositing or withdrawing cash more than Rs 50,000 from the bank. Notice may be received for large cash transactions done without PAN.
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