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

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doraemon

doraemon

TF Legend
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
 
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Solution
SSV
doraemon said:
Can we open zero balance current account for this purpose?
Without actual business, on individual basis
Online available?
Click to expand...
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
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monika vega said:
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.
Click to expand...
What is considered as cash deposit?

Is it physical cash being deposited via bank, ATm by a person into an account? This is clearly a cash deposit

But,

1.will an online transfer from person A to person B considered as cash deposit, into person B's account? Will these limits apply in this case?



2. Also the limit is 10L but 2L deposits can be penalised as well? Anyone have any knowledge about this?


3. Will paying a credit card 2L in a year attract scrutiny?

Doubts for a long time.
 
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MusicalMind said:
What is considered as cash deposit?

Is it physical cash being deposited via bank, ATm by a person into an account? This is clearly a cash deposit

But,

1.will an online transfer from person A to person B considered as cash deposit, into person B's account? Will these limits apply in this case?



2. Also the limit is 10L but 2L deposits can be penalised as well? Anyone have any knowledge about this?


3. Will paying a credit card 2L in a year attract scrutiny?

Doubts for a long time.
Click to expand...
1.Any physical transaction is considered whether you use put it in atm or branch.
2. Transactions worth 10L is mandated by law to be reported. But bank can report for 50K also. There is no lower limit.
3- cc bill payment by cash worth 1L is reported. By non cash method its 10L. Again these are mandated, bank can report for any lower amount, if they suspect any illegal activity

Its like if you spit on a guy , you're definitely getting punched. But if talk s#it you might get punched or not. Depends on many factors.😋
 
Last edited:
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Look, you're just making this complicated for no reasons.
If the amount you have is from the legit source, then get hold of a CA and clear things up by showing expenses / profits / minimal taxes if any.

We've done hefty transactions without any issues (cash + transfers) due to the nature of our business. Spreading into 100s of accounts thinking you'll get away or spreading it to over 10 days or in any intervals are all a pointless activity (you're simply wasting your time and fooling yourself, not I-T or Banks) as everything is linked to the PAN.

Minimal charges will be imposed for high cash deposits but it's not a problem at all. Banks are required to submit all transaction details but if these kinda transactions are a usual thing in your business, then they wouldn't bother you as long as you're filing ITRs (there are ways to legally save taxes and avoid some too) but if you're some kinda salaried person with a profession that earns basic and suddenly you're starting to deposit high cash into your savings account, that is an account of interest to investigate (that too not for taxes reasons but to see if it's of any fraudulent money/money laundering) but if it's business money and you do all year long, then it isn't a problem at all.

Just for your peace of mind, deposit it into 2 parts of 9.99L each (overall in a year if you cross a 5L limit of deposits in cash, then it's anyway getting reported --- This is PAN level not number of accounts, it doesn't matter).
 
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SmartSave said:
Look, you're just making this complicated for no reasons.
If the amount you have is from the legit source, then get hold of a CA and clear things up by showing expenses / profits / minimal taxes if any.

We've done hefty transactions without any issues (cash + transfers) due to the nature of our business. Spreading into 100s of accounts thinking you'll get away or spreading it to over 10 days or in any intervals are all a pointless activity (you're simply wasting your time and fooling yourself, not I-T or Banks) as everything is linked to the PAN.

Minimal charges will be imposed for high cash deposits but it's not a problem at all. Banks are required to submit all transaction details but if these kinda transactions are a usual thing in your business, then they wouldn't bother you as long as you're filing ITRs (there are ways to legally save taxes and avoid some too) but if you're some kinda salaried person with a profession that earns basic and suddenly you're starting to deposit high cash into your savings account, that is an account of interest to investigate (that too not for taxes reasons but to see if it's of any fraudulent money/money laundering) but if it's business money and you do all year long, then it isn't a problem at all.

Just for your peace of mind, deposit it into 2 parts of 9.99L each (overall in a year if you cross a 5L limit of deposits in cash, then it's anyway getting reported --- This is PAN level not number of accounts, it doesn't matter).
Click to expand...
So its Cumulative deposits of all SB Accounts at PAN Level ?
 
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We should not be condoning and helping tax evasion. OP should declare the income and pay requisite tax on it. Whether he does or not, the forum should not help him evade tax and in fact such questions should be banned.
 
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SSV said:
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


www.icicibank.com

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 www.icicibank.com
Click to expand...
All accounts are under same pan number and the limit of cash deposit is 10 L in a financial year .
So , if he deposit more than 10 lakh including all the accounts .
Don't you think it will reported in AIS .
What's the role here for the number of accounts. All are under same pan number .

I don't know so I am just asking .
 
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praful47 said:
All accounts are under same pan number and the limit of cash deposit is 10 L in a financial year .
So , if he deposit more than 10 lakh including all the accounts .
Don't you think it will reported in AIS .
What's the role here for the number of accounts. All are under same pan number .

I don't know so I am just asking .
Click to expand...
All AIS reporting is done at the aggregate level of a financial institution, not at the aggregate level of PAN..
Means all the data is aggregated by all the branches of A Bank and then reported by each bank…

BTW:
It’s not illegal to hold cash or make cash deposits in to banks..
It just that you need to have complete answers about the source of that Cash when asked by IT dept
 
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SSV said:
All AIS reporting is done at the aggregate level of a financial institution, not at the aggregate level of PAN..
Means all the data is aggregated by all the branches of A Bank and then reported by each bank…

BTW:
It’s not illegal to hold cash or make cash deposits in to banks..
It just that you need to have complete answers about the source of that Cash when asked by IT dept
Click to expand...
If this is so , then it will also be applicable for credit card bill payments if cash payment is done .
 
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