Cash deposit and withdrawal limit

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This discussion clarifies cash deposit and withdrawal limits to help individuals and private limited companies avoid Income Tax scrutiny. Banks report high-value transactions exceeding certain thresholds, such as over ₹10 lakh in savings accounts or ₹50 lakh in current accounts annually. Daily cash deposits of ₹50,000 or more in savings accounts also trigger reporting, as do significant cash transactions like foreign currency sales or purchasing pay orders/demand drafts.

DIVYESH JAIN

DIVYESH JAIN (Querist)

02 December 2022 Dear Sir,

I want to know what is the maximum amount that can be withdrawn and deposited in the bank during a day or in one financial year incase of an individual so that it does not come under Income tax scrutiny.

Also what is the limit incase of Pvt Ltd company.

Please advise.

Regards,
Divyesh Jain

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

02 December 2022 The limit is based on transactions in accounts, not by individual or company..
By filing form 61A, a statement of financial transactions, banks have to report the cash deposits/withdrawal transactions on daily and yearly basis. (known as High Value Transactions).
1. Any transaction exceeding ₹10 lakh in a savings bank account and ₹50 lakh in a current bank account in a financial year .
2. Cash deposits in FD bank account exceeding ₹10 lakh need to be notified.
3. Cash deposits of Rs. 50,000/- or more in any savings account per day.
4. Sale of foreign currency amounting to ₹10 lakh or more in a financial year.
5. Cash payment for the purchase of POs (Pay orders) / DDs (Demand drafts) for amounts annually totaling Rs 10 lakh or more.
etc... etc...

DIVYESH JAIN

DIVYESH JAIN (Querist)

03 December 2022 Ok Sir, Thanks for your reply..

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

03 December 2022 You are welcome ..

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