Cash Transaction Limit for FY 2024-25

Cash transaction limits means amount of money that can be transferred or exchanged in cash without going aganist the regulatory standards. 

It is regulatory measures which are set by the governments or financial institutions to restrict the amount of cash that can be used in a single transaction or over a specific period. 

These limits are implemented to take action against illegal activities such as money laundering, tax evasion etc.

Thresholds Limit for savings and current accounts under the Income Tax Act

Individuals depositing in savings accounts INR 10 lakh or more in a financial year (April to March) must notify tax authorities. The same limit is for Fixed Deposit.

Current account holders have a threshold limit of INR 50 lakh in a financial year.

Property Transactions

Purchase or sale of immovable property must not exceed Rs. 30 Lakh.

Investment Threshold Limits

Investment in mutual funds, shares limt to Rs. 10 Lakh.

Limits on Foreign Exchange Transactions

Transactions under the Liberalized Remittance Scheme (LRS) must not exceed Rs. 10 Lakh during the financial year.

Applicable TDS rates on cash withdrawals 

If withdrawals are more than INR 1 crore, 2% TDS is applicable.

For those who don't file income tax returns –

• 2% TDS applies to withdrawals over INR 20 lakh and 
• 5% over INR 1 crore.

Penalties for receiving significant cash amounts in a specific year or transaction

Penalties are imposed on receiving more than INR 2 lakh under Section 269ST.

Cash Transaction Limits in Current Accounts

Limits can vary depending on the bank like SBI sets a deposit limit in current account 5 lakh to INR 100 crore per month.

Daily cash transaction limit as per Section 269ST

Daily limits are set to INR 2 lakh under Section 269ST. Here, transactions can be either cash withdrawals, transfers, and payments.

Cash Donation - Donation more than Rs 2000 is not allowed.

Cash gift limit 

Gifts less than INR 50,000 in a financial year are exempted but if received more than INR 50,000 tax is applicable.

However, for gifts received from immediate relatives or on the occasion of marriage, no tax will be applicable.

Maximum limit in fixed deposit accounts

There is no maximum limit but TDS @ 10% is applicable if interest income on fixed deposits exceeds Rs 40,000 for individuals and Rs 50,000 for senior citizens.

Limitations on cash payments for credit card bills

Cash payments on credit card bills may vary depending upon the banks: 

The per day limit for Credit Card (Visa) Bills of SBI is INR 50,000 while the per transaction limit is INR 25,000.

When notice is not issue?

No notice will be issue: 

• If you declare properly all the sources of income which has been deposited as cash into your account through ITR filling every financial year.
• If your income is not taxable or fall under basic exemption limit.

But if you are under reporting your income then a notice may be issued.