Income tax rule: How much cash can you receive in your bank savings account in one financial year to avoid I-T notice?
3 months, 1 week ago

Income tax rule: How much cash can you receive in your bank savings account in one financial year to avoid I-T notice?

Live Mint  

Income tax rule: Have you ever considered how much cash you can deposit and withdraw in your bank savings account in a fiscal year to avoid being investigated by the income tax authorities? Personal finance experts say that as per income tax regulations, the total cash deposits or withdrawals in a savings account during a financial year should not exceed ₹10 lakh. Any cash deposit that exceeds ₹10 lakh across all of your savings accounts within a fiscal year should be reported to the income tax department. To respond to an income tax notice regarding high-value cash transactions, you must have adequate proof to support your claim regarding the funds' origins.

Tax Bank Income Person Single Cash Transaction  cash  receive  single  rule  financial  lakh  person  notice  tax  income  transactions  transaction  savings  avoid  bank

History of this topic

MUST check in ITR filing! These cash transactions may lead to 100% income tax penalty
2 months, 1 week ago

MUST check in ITR filing! These cash transactions may lead to 100% income tax penalty

Live Mint  

MUST check in ITR filing: Tax sleuths are out to tighten the noose on cash transactions. Ahead of the union budget, Mint takes a look at some transactions that may result in hefty penalties by the Income Tax department, as the government seeks to discourage the flow of liquid money. So, taxpayers must be aware that some cash transactions may …

Income tax rules: How much cash can you receive in one day to avoid an I-T notice?
3 months, 2 weeks ago

Income tax rules: How much cash can you receive in one day to avoid an I-T notice?

Live Mint  

The income tax department carefully monitors high-value cash transactions, so taxpayers should exercise caution when engaging in them. Section 269ST of the Income Tax Act prohibits receiving cash payments of ₹2 lakh or more in a single day for a single transaction or related transactions on a single occasion. “Taxpayers should be aware that the Income Tax Department monitors high-value …

What Income Tax Department Will Do If You Exceed Rs 10 Lakh Deposit Limit In Savings Account
6 months ago

What Income Tax Department Will Do If You Exceed Rs 10 Lakh Deposit Limit In Savings Account

News 18  

The tax is levied on your income if it is above a certain limit as per the tax slabs. You can deposit Rs 10 lakh in your savings account within a year without facing any problems from the Income Tax Department. If an account holder is unable to tell where the money came from, the Income Tax Department can recover …

Transactions seen as red flags by Income Tax Department; can send tax notice
1 year, 6 months ago

Transactions seen as red flags by Income Tax Department; can send tax notice

Live Mint  

Many taxpayers are dreading after some people complained on their social media handles of getting Income Tax notices. Several factors could lead to the department issuing a notice to an account holder depositing more than Rs 10 lakh in cash within a fiscal year. If a payment exceeding Rs 1 lakh is made in cash towards your credit card bill …

Did you know you have to pay TDS on large cash withdrawals from a bank? We explain
1 year, 10 months ago

Did you know you have to pay TDS on large cash withdrawals from a bank? We explain

Live Mint  

Did you know that an excess amount of cash withdrawal from a bank or post office can lead to deduction of TDS? The tax is deducted when making any cash payment to any person in excess of Rs 20 lakh or Rs one crore from his/her account maintained with such banks or post offices. These include central or state government, …

Income tax: These 5 cash transactions may attract I-T notice. Details here
3 years, 2 months ago

Income tax: These 5 cash transactions may attract I-T notice. Details here

Live Mint  

Income tax department has become highly vigilant against cash transactions these days. Advising taxpayers to report high value cash transaction in one's income tax return ; Amit Gupta, MD at SAG Infotech said, "If an individual makes high-value cash transactions, there are chances that he or she might get a notice from Income Tax Department. On top 5 cash transactions …

New TDS rules: How much tax is deducted for making cash withdrawals from bank
4 years, 8 months ago

New TDS rules: How much tax is deducted for making cash withdrawals from bank

Live Mint  

To discourage cash transactions and increase tax compliance, the income tax department has changed TDS rules for making cash withdrawals from banks and post offices from this month. For high-value cash transactions totalling over ₹20 lakh in a given financial year, the TDS rate is directly dependent on whether you have filed your income tax returns for the last three …

No questions to those depositing up to Rs 2.5 lakh, clarifies I-T
8 years, 1 month ago

No questions to those depositing up to Rs 2.5 lakh, clarifies I-T

India TV News  

Providing clarity on scrutiny of deposits made in banks post demonetisation, the Central Board of Direct Taxes on Monday said that no questions will be asked about deposits of up to Rs 2.5 lakh and only those accounts will be probed that do not match the tax returns. Using Big Data analytics, the Income Tax Department has segregated different kinds …

Report deposits above Rs 10 lakh a year, cash payment of over Rs 1 lakh on credit card: Govt tells banks
8 years, 2 months ago

Report deposits above Rs 10 lakh a year, cash payment of over Rs 1 lakh on credit card: Govt tells banks

India TV News  

In yet another measure related to the recent demonetisation, the government has asked banks to report deposits in any account aggregating Rs 10 lakh in a year, as well as cash payments of Rs 1 lakh or more on credit card bills. In a January 17 notification, the Central Board of Direct Taxes made it mandatory for a banking company …

Tax department asks banks to report cash deposits above Rs10 lakh
8 years, 2 months ago

Tax department asks banks to report cash deposits above Rs10 lakh

Live Mint  

New Delhi: The tax department has asked banks to report deposits in any account aggregating Rs10 lakh in a year, as well as cash payments of Rs1 lakh or more on credit card bills. It reiterated its November 2016 instruction asking banks to report all cash deposits of Rs2.5 lakh or more made in one or more accounts of a …

Cash withdrawal and deposit rules as of 19 January
8 years, 2 months ago

Cash withdrawal and deposit rules as of 19 January

Live Mint  

New Delhi: The Reserve Bank of India on Tuesday enhanced the cash withdrawal limit at automated teller machines to Rs10,000 per day per card. Here is a list of RBI rules on cash withdrawal and deposits as of 19 January: ■ For saving bank account customers, cash withdrawal limit from ATMs now stands at Rs10,000 per day per account. ■ …

I-T suspects Rs 3-4 lakh crore evaded income deposited in banks post note ban
8 years, 2 months ago

I-T suspects Rs 3-4 lakh crore evaded income deposited in banks post note ban

India TV News  

I-T suspects Rs 3-4 lakh crore evaded income deposited in banks post note ban The government’s analysis of bank deposits post-demonetisation so far show an estimated Rs 3-4 lakh crore of tax-evaded income deposited in old notes during the 50-day window provided to get rid of junked Rs 500/1000 notes. A senior official said the Income Tax Department has been …

Tax department asks banks to report pre-demonetisation cash deposits
8 years, 2 months ago

Tax department asks banks to report pre-demonetisation cash deposits

Live Mint  

New Delhi: Seeking to analyse the banking transactions in months before the demonetisation, the income tax department has asked banks to report cash deposits in savings accounts between 1 April to 9 November, 2016. Besides, banks have also been directed to ask the account holders, who did not furnished PAN or Form-60 at the time of opening bank account, to …

New income tax rules to curb unaccounted cash
8 years, 4 months ago

New income tax rules to curb unaccounted cash

Live Mint  

In order to track the unaccounted money making its way into bank and post office accounts post demonetisation, the Central Board of Direct Taxes has amended certain income tax rules. Now, cash deposits in bank and post office accounts above a certain limit—between 9 November and 30 December 2016—will get reported to the income tax department. “114E has been amended …

Modi govt steps up scrutiny of cash deposits in black money fight
8 years, 4 months ago

Modi govt steps up scrutiny of cash deposits in black money fight

Live Mint  

New Delhi: Even as the Narendra Modi government battles the opposition both inside and outside Parliament over demonetisation of high-value bank notes, it is stepping up scrutiny to prevent people from converting black money into legal tender. The income-tax department has made it mandatory to link the permanent account number to cash deposits of a certain value and lowered the …

Banks to report deposits over Rs 2.5 lakh in 50-day window
8 years, 4 months ago

Banks to report deposits over Rs 2.5 lakh in 50-day window

New Indian Express  

NEW DELHI: Moving quickly to plug loopholes, the Income Tax Department has asked banks to report all cash deposits exceeding Rs 2.5 lakh during the 50-day window provided to tender the now-defunct 500 and 1000 rupee notes. But in view of apprehensions that a large number of illegal or black money may sought to be converted into white during the …

Govt says deposits above Rs 2.5 lakh to be taxed: Your 4 questions answered
8 years, 4 months ago

Govt says deposits above Rs 2.5 lakh to be taxed: Your 4 questions answered

Hindustan Times  

Cash deposits above Rs 2.5 lakh could attract tax and penalty and authorities might take away 90% of your money if there is an income mismatch, according to a government decision on Wednesday. Revenue secretary Hasmukh Adhia answers the four frequently asked questions: Read: Rs 500, Rs 1000 notes scrapped: 25 things RBI wants you to know A lot of …

Rs 500, Rs 1,000 ban: Deposits above Rs 2.5 lakh to face tax, 200% penalty on mismatch
8 years, 4 months ago

Rs 500, Rs 1,000 ban: Deposits above Rs 2.5 lakh to face tax, 200% penalty on mismatch

Firstpost  

New Delhi Further dangling the stick, government tonight warned that cash deposits above Rs 2.5 lakh threshold under the 50-day window could attract tax plus a 200 percent penalty in case of income mismatch. “We would be getting reports of all cash deposited during the period of November 10 to December 30, 2016, above a threshold of Rs 2.5 lakh …

Deposits not matching with tax returns to attract 200% fine
8 years, 4 months ago

Deposits not matching with tax returns to attract 200% fine

The Hindu  

Those who have deposited more than Rs 10 lakh in their bank accounts, not commensurate with their income tax returns, will have to pay tax and a 200 per cent penalty on the amount as laid out in the Income Tax Act, Revenue Secretary Hasmukh Adhia tweeted on Wednesday. “If cash amount of above Rs.10 lakh is deposited in a …

Deposits above Rs 2.5 lakh to be taxed, mismatch with income to draw penalty
8 years, 4 months ago

Deposits above Rs 2.5 lakh to be taxed, mismatch with income to draw penalty

Hindustan Times  

In another late night announcement, the government warned that cash deposits above Rs 2.5 lakh during the 50-day window to return 1000- and 500-rupee notes could be taxed while a 200% penalty would be applied to deposits that don’t match declared incomes. A man displays 500 rupee notes following Prime Minister Narendra Modi’s announcement banning 500 and 1000 rupees notes …

Discover Related