Planning to Deposit Cash in the Bank? Know These Rules First!
Siddhi Jain | December 9, 2024 11:15 PM CST
Depositing cash in the bank is a regular task, but did you know exceeding certain limits could lead to hefty penalties? Here's what you need to know to avoid trouble:
Key Rules for Cash Deposits
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Declare Large Deposits:
- Savings Account: Depositing over ₹10 lakh in a financial year requires you to explain the source of funds.
- Current Account: For deposits exceeding ₹50 lakh, similar rules apply.
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PAN Requirement:
- Any cash deposit of ₹50,000 or more mandates providing your PAN details.
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Tax Implications:
- Failure to disclose the source of funds can result in up to 60% tax, plus a 25% surcharge and 4% cess.
Why These Rules Exist
The government aims to reduce cash transactions, curb tax evasion, and prevent money laundering. Large unexplained cash deposits can trigger scrutiny by the Income Tax Department.
Stay Compliant
To avoid penalties, always keep a record of your income and declare sources when depositing large sums in the bank. Stay informed and follow these rules for hassle-free banking!
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