Cash Deposit Limit in Savings & Current Bank Account without attracting the attention of Tax Authorities

Here's a breakdown of the cash deposit limits as per the Income Tax Act:

1. Purpose: Cash deposit limits in savings accounts are set to monitor and regulate cash transactions, preventing money laundering and tax evasion.

2. Regulations: According to the Income Tax Act, individuals depositing INR 10 lakh or more in a fiscal year must notify tax authorities. For current accounts, this threshold rises to INR 50 lakh.

3. Tax Implications: While deposits don't incur immediate taxation, financial institutions must report transactions exceeding these limits to the Income Tax Department.

4. Compliance Importance: Adhering to these regulations is crucial for maintaining transparency and integrity in financial dealings.

5. Monitoring Flow: These limits help authorities monitor cash flow, ensuring legality and preventing illicit financial activities.

By understanding and complying with cash deposit limits, individuals and businesses contribute to a more robust financial ecosystem.