From 1 April 2025, the rules of depositing cash in a savings account in India are going to change. These changes have been determined by the Income Tax Department and the Reserve Bank of India (RBI). The purpose of these rules is to increase financial transparency and prevent tax evasion. In this article, we will discuss these new rules in detail and also explain how these rules can affect your banking transactions.
According to these rules, the Income Tax Department will be informed for depositing more than ₹ 10 lakh in a financial year in a savings account. In addition, a PAN card will be required at a single deposit of more than ₹ 50,000. This rule is to promote financial security and monitor large cash transactions. It is important to understand these rules so that you can work safely and convenient in your banking transactions.
Cash deposit limits in savings accounts
It is very important to understand the limit to deposit cash in a savings account so that you can do your banking transactions in a safe and transparent manner. The table below gives details of the rules for depositing cash in the savings account:
| Description | Rule |
| Daily deposit limit | PAN is not required at a deposit of up to ₹ 50,000. PAN or Form 60/61 is required at more than ₹ 50,000 deposits. |
| Annual deposit limit | ₹ 10 lakh per financial year. The Income Tax Department is informed if more accumulated than this. |
| Single deposit limit | A single deposit of more than ₹ 2 lakh is banned under Section 269ST. |
| PAN card requirement | PAN card is required at a deposit of more than ₹ 50,000. |
| Income tax effect | Notice can be sent by the Income Tax Department on more than ₹ 10 lakh deposit. |
| Banking rules | Banks have to inform the Income Tax Department about large deposits. |
| Financial security | There are rules for monitoring large cash transactions. |
Rules to deposit cash in savings account
By understanding the rules of depositing cash in a savings account, you can make your banking transactions safe and transparent. Here are some important things that should be noted:
- Daily deposit limit: The daily deposits in most banks are ₹ 50,000. On depositing more than this limit, you have to show your PAN card.
- Annual deposit limit: The Income Tax Department is informed for depositing more than ₹ 10 lakh in a savings account in a financial year.
- Single deposit limit: According to Section 269st, no more than ₹ 2 lakh cash can be taken from a person in a day.
Benefits and disadvantages of depositing cash in savings account
There are many benefits and disadvantages of depositing cash in a savings account. Here are some important things:
Benefit:
- Financial transparency: Cash deposits increase financial transparency.
- Stopping tax evasion: Income tax department gets information about large deposits, which helps in preventing tax evasion.
- Financial security: Monitoring of large cash transactions increases financial security.
Loss:
- Complexity: People may have trouble due to the complexity of rules.
- Additional documents: Additional documents are required on more deposits.
- Income tax notice: Notice can be sent by the Income Tax Department on more than ₹ 10 lakh deposit.
Documents required to deposit cash in savings account
Following is information about the documents required to deposit cash in a savings account:
- PAN Card: PAN card is required at a deposit of more than ₹ 50,000.
- Form 60/61: If you do not have a PAN card, you can submit the Form 60/61 and submit it.
- Income Tax Return: If you get income tax notice, you may have to file income tax returns.
How to follow the rules for depositing cash in a savings account
To follow the rules of depositing cash in a savings account, keep in mind the following things:
- Daily and annual limits: Take care of the daily and annual deposit limit.
- PAN Card: Show PAN card at more than ₹ 50,000 deposits.
- Income tax department: If more than ₹ 10 lakh is deposited, the Income Tax Department will be informed.
- Consulting Financial Advisor: If you have any doubt about the rules, consult a financial advisor.
conclusion
It is important to understand the rules of depositing cash in a savings account so that you can make your banking transactions safe and transparent. By following these rules, you can avoid the notice of the Income Tax Department and keep your financial transactions streamlined.
Disclaimer: This article is for general information and is not an alternative to any personal financial advice. It would be appropriate to consult a financial advisor before taking a financial decision.
