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Savings Account holders must be aware that there are several important banking and tax-related changes have happened in 2026. Knowing these below mentioned rules could help you to avoid unnecessary tax queries.
Cash Deposits Monitored Through Aadhaar-linked Identification Details
From 1 April 2026, if a person deposits cash into saving account during a financial year crossing threshold limit, the bank may report the transaction to the tax authorities.
Here, annual cash-deposit threshold for a savings account depends on availability PAN information:
| Situation | Threshold | Consequence |
| With PAN | If cash deposits is more than ₹10 lakh during the financial year. | IT Department may issue notice, taxpayers should maintain proper records showing where the cash came from. |
| Without PAN | If cash deposits is more than ₹5 lakh during the financial year. | Reported to the IT Department through Aadhaar even without an existing PAN. |
Explore more in details - TDS Rules on Cash Withdrawals 2026: With New TDS Section and Codes
PAN Reporting Removed For Single Day Transaction
Earlier, bank or post office are used to ask for PAN, if cash deposit was more than ₹50,000 per day.
But under new rule, if the aggregate cash deposits is more than ₹10 lakh in a financial year, PAN would become mandatory.
TDS on Cash Withdrawal Limit Changed
Under Old Rule,
| Category | Cash Withdrawal |
| For Regular ITR Filer | 2% TDS above ₹1 crore. |
| For Non ITR Filer | 2% TDS on ₹20 lakh - ₹1 crore, 5% above ₹1 crore. |
Under New Rule - Section 393(3),
TDS rate remained same for the regular and non-regular ITR filer, but the change is TDS will apply on the entire cash withdrawal amount instead of only the amount exceeding the threshold.
Know more in details with example - TDS on Cash Withdrawals with Example: Excess vs. Entire Amount
Fixed Deposits Limits
Fixed deposits aggregating to more than ₹10 lakh per bank in a Financial Year may come under the prescribed reporting framework.
Auto-Sweep Accounts Can Also Require Attention
Many banks offer an auto-sweep facility, where excess savings-account funds are automatically transferred into a fixed deposit.
So, you must maintain the bank statements and FD records carefully as this can create additional reporting considerations because money may repeatedly move between the savings account and FD.
Interest Reporting
All savings and FD interest are reported to the IT Department by banks, cooperative banks, post offices and NBFCs.
If TDS was deducted, the amount may appear in Form 26AS.
Even no TDS is deducted, still bank reporting mandatory.
Interest income must be reported in the ITR under "Income from Other Sources."
Reporting Receipts that are Not in Nature of Income
A new return field called "Receipts not in the nature of income" applies from FY 2025–26. The purpose is to disclose money received in a bank account even if the receipt itself is not taxable income.
- Transfer between own bank accounts.
- Loans received or borrowed funds.
- FD or RD maturity proceeds.
- Repayment of loan principal.
- Income-tax Refunds.
- Gifts from specified received.
- Capital contributions from a mother, father, brother, or sister.
- Security deposits and advances received.
- Sale of a personal asset.
- Reimbursements and insurance claims.
- Share capital or other capital receipts.
- Savings deposited into the bank.
- Opening bank balance and transfers from family members.
In Short
Don't panic about high-value transactions and don't ignore them. Staying updated with these rules and reporting ITR correctly can help taxpayers stay compliant and avoid unnecessary tax queries and notices.
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