Stories
Can You Get an IT Notice for Keeping 10 Lakh Rupees in Your Savings Account
- •Banks inform the Income Tax Department if a cash deposit of 10 lakh rupees or more is made in a savings account within a single financial year.
- •For current accounts, the cash deposit limit for reporting is set at 50 lakh rupees.
- •Problems can arise if the deposited amount does not match your declared income or if large cash transactions occur repeatedly without filing an ITR.
- •Financial institutions report high-value transactions to the tax authorities through the Statement of Financial Transactions.
- •If you receive an IT notice, do not panic; gather proof of your income source, check bank statements, and respond within the specified time.
Key Questions Answered
According to current rules, if a cash deposit of 10 lakh rupees or more is made in a savings account in a single financial year, the bank informs the Income Tax Department. For current accounts, this limit is 50 lakh rupees, and the calculation can also include multiple accounts combined.
No, notices do not always come. If your source of income is clear and mentioned in your ITR, there is usually no problem, but issues can arise if deposits do not match income or if large transactions occur without filing an ITR.
Banks and financial institutions send information on transactions exceeding a certain limit to the Income Tax Department through a Statement of Financial Transactions (SFT). This allows the department to easily identify who has made large transactions.
