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).
| Account Type | Set Limit |
| Saving | Up to ₹10 lakh aggregate |
| Current | Up to ₹50 lakh aggregate |
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.
| Turnover Type | Threshold per FY |
| Goods | ₹40 lakh |
| Services | ₹20 lakh |
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
| Transaction | Limit to Avoid Scrutiny |
| FD (cash) | <₹10 lakh FY; <₹2 lakh single |
| Credit card pay | <₹10 lakh total; <₹1 lakh cash |
| Property | >₹30 lakh reported; >₹50 lakh 1% TDS |
| Shares/MF/Crypto | All tracked in AIS/TIS/26AS |
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.
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