The maximum cash deposit in a savings account is ₹1 Lakh per day and ₹10 Lakh per financial year as per income tax regulations.
Understanding Cash Deposit Limits in Savings Accounts
Depositing cash into your savings account is subject to specific limits established by financial institutions and regulated by income tax authorities. These limits are put in place to ensure financial transparency and to monitor large-value transactions.
Daily Cash Deposit Limit
You can deposit a maximum of ₹1,00,000 (One Lakh Rupees) in cash into your savings bank account within a single day. This daily cap helps banks manage their cash flow efficiently and track any unusual deposit patterns.
Annual Cash Deposit Limit
According to income tax rules, the aggregate cash deposit limit for a savings account is ₹10,00,000 (Ten Lakh Rupees) over the course of a financial year. This means that while you can make daily deposits up to ₹1 Lakh, the total amount of cash you deposit across all transactions in that financial year must not exceed ₹10 Lakh. Should your total cash deposits surpass this annual threshold, banks are typically obligated to report these transactions to the income tax authorities.
Key Points to Remember:
- Staggered Deposits: It's important to note that you cannot deposit the entire annual limit of ₹10 Lakh in a single day. The daily limit of ₹1 Lakh always applies. For instance, while you could deposit ₹3 Lakh, it would need to be spread over at least three separate days.
- Regulatory Scrutiny: Deposits exceeding the annual limit are subject to potential scrutiny by income tax departments to verify the source of the funds and ensure compliance with tax laws.
- PAN Card Requirement: For cash deposits exceeding ₹50,000, it is generally mandatory to provide your Permanent Account Number (PAN) to the bank.
Summary of Cash Deposit Limits
To provide a clear overview, here are the key cash deposit limits for savings accounts:
| Limit Type | Amount (INR) | Details |
|---|---|---|
| Per Day Limit | ₹1,00,000 (One Lakh) | The maximum amount of cash you can deposit into your savings account in a single day. |
| Per Year Limit | ₹10,00,000 (Ten Lakh) | The cumulative maximum cash deposit allowed in a savings account within a financial year, as per income tax regulations. |
Understanding these limits is crucial for all account holders to ensure compliance with financial regulations and to avoid any potential complications with tax authorities. It is always advisable to maintain proper records of your cash deposits, especially for significant amounts.
