Savings Account Transaction Limit 2026: UPI or Cash, Maximum Balance, Notice Timeline

This article explains how cash and online transactions in savings/current accounts per financial year can trigger reporting to Income Tax or GST departments to avoid notices. 

So, all transaction limits and reporting must be tracked as per financial year basis as crossing limits will trigger Statement of Financial Transactions (SFT) reports from banks to Income Tax Department post-FY end. 

Limits on Number of Bank Accounts

You can open unlimited number of saving accounts across private, PSU, small finance banks, post office or payment banks, there is no statutory cap from Income Tax, RBI, GST, ED or FEMA.

Cash Deposit Limits to Avoid SFT Reporting

Banks track cash deposits made by a person using their PAN. If the aggregated cash deposited in a financial year exceeds a set limit, the bank reports it to the IT Department via SFT (Statement of Financial Transactions).

Even though the SFT reporting limit is higher and based on yearly totals, but a ₹2 lakh or more cash received for sale of goods/services at one time can still:

• Violate cash-transaction rules
• Trigger scrutiny or penalties

Cash Withdrawal Limits

Saving accounts

If aggregate cash withdrawal is more than ₹10 lakh per FY per bank triggers SFT report. 

Current accounts

Above ₹50 lakh aggregate triggers report. 

Section 194N TDS

If no ITR filed for prior 3 years and you withdraw more than ₹20 lakh cash in a year from an account, TDS at 2% applies on the amount above ₹20 lakh (in addition to SFT reporting when applicable).

Online Transactions: UPI, NEFT, RTGS, IMPS

As of now, only cash is SFT-reportable; UPI/NEFT/RTGS/IMPS transactions doesn't auto‑reported under the same SFT category.

However, once your cash transaction crosses the SFT threshold and a case is picked, the officer will ask for explanation of all credits in that period, including online.

GST on online receipts

For small traders/service providers, online credits into accounts/payment gateways can flag GST registration issues if receipts exceed threshold.

Maximum Balance and Other Transaction Limits

There is no maximum balance set by Income Tax, GST or RBI. If you have ₹1 lakh or ₹1 crore in your account then also ok but the balance must justify your over income. But if ITR not filed and have huge balance then it can be risky because in AIS, TIS closing balance is a reportable transaction.

Other Limits for 2026

Time Limit for Income Tax Notice

For SFT transactions, 

The Income Tax Department can send a notice up to 3 years from the end of Assessment Year plus extended 3 months if transaction is up to ₹50 lakh. 

• Example: For FY 2025–26, a notice can come up to 31-03-2030 (or 30-06-2030).

Notices can be sent up to 5 years from the end of Assessment Year plus 3 months if transaction is more than ₹50 lakh.  

• Example: For FY 2025–26, a notice can come up to 31-03-2032 (or 30-06-2032).

However, now AIS/TIS shows transactions in the same year, so mismatches are visible early.