Savings Account Holders Attention! Transaction Beyond THIS Limit May Attract Income Tax Notice- Check Rules, Deposit, Withdrawal Limit

Under Section 269ST of the Income Tax Act, individuals cannot receive over Rs 2 lakh in cash in a single transaction or related transactions on a single day in your savings account.

If your total cash deposits across all savings accounts exceed Rs 10 lakh in a financial year, banks must report this to the Income Tax Department. 

Deposits above Rs 10 lakh in a financial year are flagged as high-value transactions. Under Section 114B, banks must notify the Income Tax Department about these deposits.

Cash deposits exceeding Rs 50,000 in a single day require a PAN card. If unavailable, you must provide Form 60/61 as a substitute. 

If you receive an Income Tax notice for high-value transactions, provide adequate evidence, such as bank statements, investment records, or inheritance documents, to verify the source of funds. 

Maintain detailed records, including receipts or proofs, for large cash deposits from legitimate sources like business sales or gifts. 

Ensure your Income Tax Returns (ITR) reflect all financial activities accurately. Avoid splitting deposits across multiple accounts, as this could still trigger scrutiny. (Image Credit: Freepik, File Photo)