How much cash can I deposit in bank accounts?Without tax or notice!

[doraemon]

Hey people
We are purchasing a shop costing 20 lakhs
We have cash and want to deposit that in bank account for cheque issue purpose


How can I deposit in such a way it doesn't not attract tax or it department attention


I have 13 accounts
Can I deposit 49k in each of them?

Need your inputs in this

 

[deep@vie]

Yeah it's white
But we do not file any itr

Dear @doraemon Without paying tax/filing itr, how is it white & if it's white then you can deposite it & can explain the source as it's white money. Why to think twice about it.

 

[MusicalMind]

The cash deposit limit in a savings account as per income tax regulations in India is ₹10 lakh during a financial year. If you deposit more than this amount, it may attract the attention of tax authorities. For those holding current accounts, this reporting threshold is elevated to ₹50 lakh.

Additionally, it’s important to note that you can deposit a maximum of ₹1 lakh per day in your savings bank account. However, the limit can exceed up to ₹2.5 lakh in a day if it’s done once in a while. As far as the annual limit is concerned, the maximum cash that can be deposited in a savings account is ₹10 lakh.


Multiple Accounts:
You mentioned having 13 accounts. While it’s technically possible to deposit ₹49,000 in each account, you should be cautious. The Income Tax Department monitors transactions, and if they notice a pattern of frequent deposits just below the reporting threshold, it might raise suspicion as accounts could be different but all of them are linked with PAN.

What is considered as cash deposit?

Is it physical cash being deposited via bank, ATm by a person into an account? This is clearly a cash deposit

But,

1.will an online transfer from person A to person B considered as cash deposit, into person B's account? Will these limits apply in this case?



2. Also the limit is 10L but 2L deposits can be penalised as well? Anyone have any knowledge about this?


3. Will paying a credit card 2L in a year attract scrutiny?

Doubts for a long time.

 

[SSV]

will an online transfer from person A to person B considered as cash deposit, into person B's account? Will these limits apply in this case

NO

Also the limit is 10L but 2L deposits can be penalised as well? Anyone have any knowledge about this

NO

3. Will paying a credit card 2L in a year attract scrutiny

In cash Yes, by digital payment No

 

[sidp]

What is considered as cash deposit?

Is it physical cash being deposited via bank, ATm by a person into an account? This is clearly a cash deposit

But,

1.will an online transfer from person A to person B considered as cash deposit, into person B's account? Will these limits apply in this case?



2. Also the limit is 10L but 2L deposits can be penalised as well? Anyone have any knowledge about this?


3. Will paying a credit card 2L in a year attract scrutiny?

Doubts for a long time.

1.Any physical transaction is considered whether you use put it in atm or branch.
2. Transactions worth 10L is mandated by law to be reported. But bank can report for 50K also. There is no lower limit.
3- cc bill payment by cash worth 1L is reported. By non cash method its 10L. Again these are mandated, bank can report for any lower amount, if they suspect any illegal activity

Its like if you spit on a guy , you're definitely getting punched. But if talk s#it you might get punched or not. Depends on many factors.😋

 

[SmartSave]

Look, you're just making this complicated for no reasons.
If the amount you have is from the legit source, then get hold of a CA and clear things up by showing expenses / profits / minimal taxes if any.

We've done hefty transactions without any issues (cash + transfers) due to the nature of our business. Spreading into 100s of accounts thinking you'll get away or spreading it to over 10 days or in any intervals are all a pointless activity (you're simply wasting your time and fooling yourself, not I-T or Banks) as everything is linked to the PAN.

Minimal charges will be imposed for high cash deposits but it's not a problem at all. Banks are required to submit all transaction details but if these kinda transactions are a usual thing in your business, then they wouldn't bother you as long as you're filing ITRs (there are ways to legally save taxes and avoid some too) but if you're some kinda salaried person with a profession that earns basic and suddenly you're starting to deposit high cash into your savings account, that is an account of interest to investigate (that too not for taxes reasons but to see if it's of any fraudulent money/money laundering) but if it's business money and you do all year long, then it isn't a problem at all.

Just for your peace of mind, deposit it into 2 parts of 9.99L each (overall in a year if you cross a 5L limit of deposits in cash, then it's anyway getting reported --- This is PAN level not number of accounts, it doesn't matter).

 

[SplendorSuperman]

Look, you're just making this complicated for no reasons.
If the amount you have is from the legit source, then get hold of a CA and clear things up by showing expenses / profits / minimal taxes if any.

We've done hefty transactions without any issues (cash + transfers) due to the nature of our business. Spreading into 100s of accounts thinking you'll get away or spreading it to over 10 days or in any intervals are all a pointless activity (you're simply wasting your time and fooling yourself, not I-T or Banks) as everything is linked to the PAN.

Minimal charges will be imposed for high cash deposits but it's not a problem at all. Banks are required to submit all transaction details but if these kinda transactions are a usual thing in your business, then they wouldn't bother you as long as you're filing ITRs (there are ways to legally save taxes and avoid some too) but if you're some kinda salaried person with a profession that earns basic and suddenly you're starting to deposit high cash into your savings account, that is an account of interest to investigate (that too not for taxes reasons but to see if it's of any fraudulent money/money laundering) but if it's business money and you do all year long, then it isn't a problem at all.

Just for your peace of mind, deposit it into 2 parts of 9.99L each (overall in a year if you cross a 5L limit of deposits in cash, then it's anyway getting reported --- This is PAN level not number of accounts, it doesn't matter).

So its Cumulative deposits of all SB Accounts at PAN Level ?

 

[SmartSave]

So its Cumulative deposits of all SB Accounts at PAN Level ?

yes

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