Cash deposit in savings account

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SachinM

32 Points Posted on 23 July 2012

Hi,

I am a software professional and currently on deputation in US for last 4 years. I pay both US and India Income tax.

I have Rs. 5 lakh which I had kept with my parents. I now want them to deposit this in my Savings account. I have the following questions:

1) Will there be any problem (from tax perspective) if they deposit this(in cash) in my savings account?

2) Should I deposit everything in one Savings account or should it be distributed?

3) What is the maximum such amount that can be deposited in a savings account?

Your help is very much appreciated.

Thanks,
SachinM

Replies (2)

Giridhar S Karandikar

Team Lead

7558 Points Posted on 23 July 2012

Any cash deposit in excess of Rs 50k requried the depositor to submit his PAN with the bank. Banks while filing the AIR need to submit the details to the I-T authorities for deposits in excess of Rs 50000. in turn the dept may take up your case & then you will be requried to show them all the income details etc..

Better way if you have two three bank accounts then you can deposit say 45000 in each bank. then again after some days again deposit the same amt. In this way you can deposit the amount in your SB a/C.