Cash Deposit Rules: Nowadays, everyone has more or less a bank account. Most people like to deposit money in the bank. Do you also have a bank account? Then there is important news for you. Now the rules have been set about how much money can be deposited in the bank. The RBI has issued new guidelines in this regard.
If you keep more cash than the limit set by RBI, you may be fined heavily. Apart from this, there is also a risk of Income Tax Department if you keep an amount more than the limit.
What is the limit for depositing money in a savings account?
The account holder can keep up to Rs 10 lakh in the savings account. But if this limit exceeds Rs 10 lakh, then you will have to inform the Reserve Bank of India or the Income Tax Department. You will have to give this information under AIR (Annual Information Return). This does not mean that you will have to pay tax, but if this amount is more than the income, then you will have to be accountable for it. Apart from this, this limit in current savings account is Rs 50 lakh.
PAN number is required in these transactions
If a person makes a transaction of Rs 50,000 or more, then a PAN number (permanent account number) is required for this. Or if the transaction amount exceeds the fixed period of one year. Then also a PAN number is required.
In such a situation, PAN card is required so that the amount of transaction done from the account can be checked. Although no tax will have to be paid in this, but you will have to inform the tax department about this amount.
You will have to provide proof of where this amount has been credited or from where you have received this money. Therefore, if you have a savings account, keep cash only up to the limit. You can also create a huge fund by investing this money in any scheme or FD.
Some banks also allow you to convert your savings account to a fixed deposit account. You can get more information about this from your bank’s website.