Cash Deposit limit in indian banks as per income tax laws. The Indian Income Tax regulations set…

Cash Deposit limit in indian banks as per income tax laws. The Indian Income Tax regulations set specific limits for cash transactions to monitor and regulate financial activities. For savings accounts, individuals depositing over INR 10 lakh in a fiscal year must notify tax authorities. The threshold for current accounts is INR 50 lakh. Notably, these deposits are not immediately taxed, but banks are required to report them. Cash withdrawals exceeding INR 1 crore incur a 2% TDS, and penalties apply to cash loans over INR 20,000. Businesses must align deposits with declared turnover to avoid penalties. Other limits include cash transaction, withdrawal, gift, fixed deposit, credit card bill payment, and real estate transaction limits to prevent tax evasion and money laundering. Finally, property purchases using full cash are prohibited, and cash payments must be recorded within the prescribed limits in the sale deed.