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Cash deposit one saving account to 2nd

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Naveen Kumar

355 Points Posted on 10 March 2022

Dear Sir

can we face any issues from IT department if we deposit cash from one account to another saving account.

Replies (2)

Quick Summary

Depositing significant cash amounts, particularly ₹10 lakh or more, between your savings accounts can trigger scrutiny from the Income Tax Department. Such transactions are reported as SFT (Specified Financial Transaction) in your Form 26AS. The IT department will assess if your Income Tax Return (ITR) justifies the deposit amount, rather than automatically deeming it incorrect. There's a daily cash deposit limit of ₹80,000.

Rounak Adlakha

ca cpt

22 Points Posted on 10 March 2022

SIR, Specified High value of transaction has a limit fo cash deposit into Savings Account 10 Lakh or More For Example You withdraw 10 LAKH or More from SAVING ONE ACCOUNT and then deposit the same in other account 10 LAKH OR More shall be marked as SFT in your 26 AS.(first)

Secondly, You will receive notice that is not correct or not an absolute statement, the Income Tax Department will compare your ITR and then decide, whether this person has the capability to deposit or do his ITR justify such a deposit.