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Income Tax Notice: If you deposit a large amount of cash in your bank account then you have to keep some rules in mind. According to the rules of the Income Tax Department, there is a limit for depositing cash in the bank, after crossing which it is reported to the Income Tax Department. If you ignore these rules or deposit large amounts of cash without knowledge, you may receive an income tax notice.
On depositing more than Rs 10 lakh in cash
If you deposit more than Rs 10 lakh in cash in a bank account in a financial year, then the bank informs the Income Tax Department. Keep track of big transactions and show it in ITR.
Cash deposit of more than Rs 50 lakh in current account
If you deposit more than Rs 50 lakh in cash in your current account in a year, the bank informs the Income Tax Department. Especially for businessmen and companies, it is mandatory to follow this rule.
TDS on cash withdrawal above Rs 1 crore
If you withdraw more than Rs 1 crore in cash from a bank account in a financial year, TDS is applicable. Those withdrawing large amounts of cash should keep this limit in mind.
Ban on cash transactions above Rs 2 lakh
There is a ban on cash transactions of more than Rs 2 lakh at a time, irrespective of the type of transaction. Violation of this rule may result in notice and fine.
Deposit or withdrawal of more than Rs 50,000 without PAN
It is mandatory to provide PAN number while depositing or withdrawing cash more than Rs 50,000 in the bank. You may get a notice for making large cash transactions without PAN.
