Saving Account Rules: Cash Deposit Limit in Saving Account as per Income Tax, check complete details
Cash Deposit Limit: Most of the people in the country have a bank account. Most of the economic activities of the people are carried out through these bank accounts. Most of these people know about the minimum balance of the account. But, apart from this, there are dozens of rules related to bank account which you should know about. There are many things like maximum limit for depositing cash in the account, charges for ATM-debit cards, charges for cheques… etc. The Reserve Bank of India (RBI) has issued detailed guidelines regarding all these things.
Before coming to the maximum amount of money that can be kept in the account, we want to tell you that in every case you have to keep a minimum amount in your account. Due to lack of minimum amount, the bank deducts penalty charge. Different banks have set their own minimum balance limits. In some cases the minimum balance limit is Rs 1,000 and in others it is Rs 10,000.
Cash deposit limit
There is also a limit for depositing money in cash in these savings accounts. According to income tax rules, a person can deposit a maximum of Rs 10 lakh in cash in his savings account in a financial year. If more cash is deposited than this, banks have to inform the Income Tax Department about that transaction. Along with this, when you deposit Rs 50 thousand or more cash in your account, you will have to provide PAN number along with it. You can deposit cash up to Rs 1 lakh in a day. Also, if you do not deposit cash in your account regularly then this limit can go up to Rs 2.50 lakh.
10 lakh limit!
If you deposit cash in your account more than the limit of Rs 10 lakh and do not provide satisfactory information about its source in the income tax return, then scrutiny is possible. If you are caught in this scrutiny, you will be fined heavily. If you do not disclose the source of income, then 60 percent tax, 25 percent surcharge, and 4 percent cess may be levied on the deposit amount.
Now coming to the point. Actually, we all deposit money in savings account to keep our earnings safe. In such a situation, its maximum limit is not fixed. But, it is certain that if you keep more money in the account and do not disclose the source of its inflow, then it is possible that it may come under the scrutiny of the Income Tax Department. If the source of inflow is clear then you do not need to be afraid.
Secondly, if you have kept a lot of money in your savings account, then you should convert it into a fixed deposit. This will give you a fair return on your money. You get very nominal returns on money deposited in savings account. There are deposit schemes in banks ranging from short term to long term i.e. from minimum seven days to tens of years. This will give you good returns on your money.
