How much cash can I deposit in bank accounts?Without tax or notice!

[doraemon]

Hey people
We are purchasing a shop costing 20 lakhs
We have cash and want to deposit that in bank account for cheque issue purpose


How can I deposit in such a way it doesn't not attract tax or it department attention


I have 13 accounts
Can I deposit 49k in each of them?

Need your inputs in this

 

[Gaara]

The cash deposit limit in a savings account as per income tax regulations in India is ₹10 lakh during a financial year. If you deposit more than this amount, it may attract the attention of tax authorities. For those holding current accounts, this reporting threshold is elevated to ₹50 lakh.

Additionally, it’s important to note that you can deposit a maximum of ₹1 lakh per day in your savings bank account. However, the limit can exceed up to ₹2.5 lakh in a day if it’s done once in a while. As far as the annual limit is concerned, the maximum cash that can be deposited in a savings account is ₹10 lakh.


Multiple Accounts:
You mentioned having 13 accounts. While it’s technically possible to deposit ₹49,000 in each account, you should be cautious. The Income Tax Department monitors transactions, and if they notice a pattern of frequent deposits just below the reporting threshold, it might raise suspicion as accounts could be different but all of them are linked with PAN.

 

[SSV]

Hey people
We are purchasing a shop costing 20 lakhs
We have cash and want to deposit that in bank account for cheque issue purpose


How can I deposit in such a way it doesn't not attract tax or it department attention


I have 13 accounts
Can I deposit 49k in each of them?

Need your inputs in this

You are absolutely fine with your strategy of 49k each time into each account … no need to worry..
You only have 20L…

Are these 13 different accounts from 13 different banks ? If so fine.. if not also it's okay.
the rule is if you deposit cash into SB accounts of a single bank for more than 10L during a financial year then it will be reported in SFT section of AIS..

Just make sure you don’t deposit exactly the same amount.. just mix them up like 47.5 k, 48.2k, 49.3k etc ….

Just for you reference these are the different cash transactions that can get IT attention…

Complete Guide on How to File Income Tax Returns - ICICI BANK

Filing your yearly income tax return can be a little challenging. Follow our complete guide to ensure that you do not make a mistake while filing your Income Tax Returns (ITR).

www.icicibank.com

 

[Vasuki]

Hey people
We are purchasing a shop costing 20 lakhs
We have cash and want to deposit that in bank account for cheque issue purpose


How can I deposit in such a way it doesn't not attract tax or it department attention


I have 13 accounts
Can I deposit 49k in each of them?

Need your inputs in this

Better would be to deposit 5-6 lakh in one person account & make 4 cheque.

+ If source of money is white & taxed..

No need to take tension. Open current account - put the money & show as expense. No worries.

Don't do business transaction with Savings account .

 

[doraemon]

Better would be to deposit 5-6 lakh in one person account & make 4 cheque.

+ If source of money is white & taxed..

No need to take tension. Open current account - put the money & show as expense. No worries.

Don't do business transaction with Savings account .

Yeah it's white
But we do not file any itr

 

[Vasuki]

Yeah it's white
But we do not file any itr

Better would be go to bank - enquire about some loan scheme for new business.
Open current account - do the transaction.

You can show anything as expense .. its the beauty of playing within the law

 

[doraemon]

Better would be go to bank - enquire about some loan scheme for new business.
Open current account - do the transaction.

You can show anything as expense .. its the beauty of playing within the law

Can we open zero balance current account for this purpose?
Without actual business, on individual basis
Online available?

 

[Walter White]

Hey people
We are purchasing a shop costing 20 lakhs
We have cash and want to deposit that in bank account for cheque issue purpose


How can I deposit in such a way it doesn't not attract tax or it department attention


I have 13 accounts
Can I deposit 49k in each of them?

Need your inputs in this

Jitna daalna hai daalo. Jab tak explain kar sakte ho funds kaha se aa rhe hai, koi problem nhi hoga.

 

[Humanbeing]

Can we open zero balance current account for this purpose?
Without actual business, on individual basis
Online available?

Yes I think there is AU freedom CA which is zero balance account on individual basis.

 

[doraemon]

Already having au 0 bal

Yes I think there is AU freedom CA which is zero balance account on individual basis.

Savings account there

 

[Humanbeing]

Already having au 0 bal

Savings account there

You can still open the current account.

 

[sidp]

Hey people
We are purchasing a shop costing 20 lakhs
We have cash and want to deposit that in bank account for cheque issue purpose


How can I deposit in such a way it doesn't not attract tax or it department attention


I have 13 accounts
Can I deposit 49k in each of them?

Need your inputs in this

Banks are required to notify cash deposit of >10L in savings and 50L in current account.
But know that these are mandatory. Bank can notify itd for any amount. If you pay cc bill by cash, even 1L is enough to get notice.

To be safe don't do more than 2/3 L in cash deposit in onebbank. And avoid more than 50K In a day.

Also no of account doesnt matter, no of banks matters and type of account matters.
So you should do few things first. 1st update your income profile in bank. If you have low variant account with profile of a student or unemployed. You have higher chance of getting flagged.

 

[SSV]

Can we open zero balance current account for this purpose?
Without actual business, on individual basis
Online available?

1) you are unnecessarily making things complicated by going thru the option of opening a current account without actual business
2) you only have 20L which is nothing in the scheme of things .. just 4 to 5 sb accounts are more than enough
3) this 1L per day / 2.5 L per day limits are all depends on the bank.. its at bank level restrictions…
4) the more you think about this the more confused and more probability of messing things up..
5) go to CA if you need more assured assistance.
6) Now I will stop spending any more time on this topic…
All the best

 

[sidp]

Can we open zero balance current account for this purpose?
Without actual business, on individual basis
Online available?

Don't open 0 bal account. Lower the account variant higher chance of getting flagged.
You can open current account without actual business, but it won't help as it will be under your pan. Better to get a gumasta card for shop which can be applied online, and open current account against it.

 

[HumorSimpson]

Can we open zero balance current account for this purpose?
Without actual business, on individual basis
Online available?

Sure shot of it notice. Currently Paytm is screwed because of this.

 

[Vasuki]

Can we open zero balance current account for this purpose?
Without actual business, on individual basis
Online available?

You want to open zero balance account for 20 l transaction 🙃🙃😁😁

 

[doraemon]

1) you are unnecessarily making things complicated by going thru the option of opening a current account without actual business
2) you only have 20L which is nothing in the scheme of things .. just 4 to 5 sb accounts are more than enough
3) this 1L per day / 2.5 L per day limits are all depends on the bank.. its at bank level restrictions…
4) the more you think about this the more confused and more probability of messing things up..
5) go to CA if you need more assured assistance.
6) Now I will stop spending any more time on this topic…
All the best

Thanks for your inputs
Now I will go with what u have said

Thanks again😃

 

[kushhh]

You are absolutely fine with your strategy of 49k each time into each account … no need to worry..
You only have 20L…

Are these 13 different accounts from 13 different banks ? If so fine.. if not also it's okay.
the rule is if you deposit cash into SB accounts of a single bank for more than 10L during a financial year then it will be reported in SFT section of AIS..

Just make sure you don’t deposit exactly the same amount.. just mix them up like 47.5 k, 48.2k, 49.3k etc ….

Just for you reference these are the different cash transactions that can get IT attention…

View attachment 44683

Complete Guide on How to File Income Tax Returns - ICICI BANK

Filing your yearly income tax return can be a little challenging. Follow our complete guide to ensure that you do not make a mistake while filing your Income Tax Returns (ITR).

www.icicibank.com

Wanted to know , what is the case with OD Account

 

[SSV]

Wanted to know , what is the case with OD Account

OD account is treated as a current account,,so 50 L will be limit for this

 

[Zacobite]

Hey people
We are purchasing a shop costing 20 lakhs
We have cash and want to deposit that in bank account for cheque issue purpose


How can I deposit in such a way it doesn't not attract tax or it department attention


I have 13 accounts
Can I deposit 49k in each of them?

Need your inputs in this

If you buy a shop.. you will need to declare PAN while registration.. So anyway they will expect details in your IT returns.. So no point in all this.. Deposit it in blocks of 1-2 Lacs over a few weeks or maybe some in Mar and some in April now.. ( so it goes in different FY).. You will anyway need to explain source of funds..