Cash Deposit by customer

There is no such limit specified.

But, If he is maintaining books of Accounts, verify the cash balance and go ahead or else it will create problems at later point of time.

Yes there are some restrction

It shouldn't be more than 2,00,000 otherwise need to explain/report

Such limit is not for the purpose of deposit in Bank Accounts.Please go through the clarification given by the Government in form of Press release.

 

Any third party cash deposit in our account is a transaction presumed to be done by us only or by our behalf only. So in such a transaction, third party may not reflect any entry in his account but ours bank accounts are reflected, although there is no limit in cash deposit but yes there can also be an inquiry against a person holding bank accounts if the cash amount is too big or the transaction seems suspicious by bank officials. 

If it's excess of Rs 2 lakhs or more , such cash deposit by customer will invite 269ST provisions and there the penalty is 100% of such amount.

This is receipt transaction of cash by you to customer's account. Customer depositing cash is just an honorary service he provides to you. That's all. Nothing more than that.

What is the highest turnover limit for saving acount in a financial year what liabilities are for this type of turnover ?

It is better to avoid such transaction. Ask the customer to issue cheque and deposit in the nearest branch or courier it to you. I agree with Mr. Kapadia

@ ajit
it has been introduced in the last budget...
finance bill 2018.

The Government had introduced a section 269ST w.e.f. 1st April, 2017

All , please be clarified.