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Cash Deposit by customer

Ajit Tejwani (12 Points)

25 January 2020

My customer wants to deposit cash money in my bank account in his city.

Is there any limit in doing this?

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10 Replies

CMA M.Keerthi chandra (C.A FINAL STUDENT AND QUALIFIED C.M.A) (561 Points)
Replied 25 January 2020

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.

ajeet singh (1392 Points)
Replied 25 January 2020

Yes there are some restrction

Roshni (Studwnt) (1141 Points)
Replied 25 January 2020

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

CMA M.Keerthi chandra (C.A FINAL STUDENT AND QUALIFIED C.M.A) (561 Points)
Replied 25 January 2020

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.

2 Like

CS Vishal Mehta (Self Employed) (436 Points)
Replied 25 January 2020

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.

Kapadia Pravin (17249 Points)
Replied 25 January 2020

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.

Neeraj Kumar Gupta (5 Points)
Replied 25 January 2020

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

CA Kiran Sutrave (CA) (428 Points)
Replied 25 January 2020

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