Cash deposit in individual account more than one crore in FY24-25

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This discussion addresses the implications of depositing over £1 crore in cash into an individual savings account during FY24-25, particularly when linked to another person's business receipts. It explores potential issues with Section 269ST of the Income Tax Act, which penalises large cash transactions, and seeks guidance on appropriate ITR filing and declaring income. The advice suggests that while businesses may have allowances for cash deposits in current accounts based on reported turnover, large cash deposits into personal savings accounts are generally not permitted.

CLS India Private Limited

CLS India Private Limited (Querist)

29 August 2025 One salaries person deposit cash more than one crore in FY .2024-25, in his saving bank account.
which is related to other person business receipt.
Which is day to day transaction cash collection and deposit daily in 1-2 days at bank.

Please suggested solution, how to deal with problem and how to file ITR and which ITR (under which section) in this case.
how much income to be declare

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

30 August 2025 Under Section 269ST of the Income Tax Act, 1961, if you receive more than ₹2 lakh in cash from a single person in one transaction or multiple transactions related to the same event, you could be hit with a 100% penalty! That means you lose every rupee you received!

CLS India Private Limited

CLS India Private Limited (Querist)

02 September 2025 Dear Sir,
if any person running resturant business, mostly received sale in cash and he deposit into bank.
in this case how deal with cash receipets with same amount depsoit into bank (cash one cr.)?
please suggest proper solution of the above matter.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

02 September 2025 For business people it's allowed for cash deposit in current account based on turnover reported in IT return.
You are not doing any business and cash deposit in savings account so it's not allowed.allowed.

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