Now Reading: Cash deposits above Rs 10 lakh may face tax scrutiny
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Cash deposits above Rs 10 lakh may face tax scrutiny
Banks must report total cash deposits exceeding Rs 10 lakh in a savings account during a financial year to the Income Tax Department, Mint reports. The threshold covers one or several transactions…
The Story in Brief
Banks must report total cash deposits exceeding Rs 10 lakh in a savings account during a financial year to the Income Tax Department, Mint reports. The threshold covers one or several transactions and does not automatically mean a tax inquiry. Customers may be asked to explain the source of the money.
Cash deposits above Rs 50,000 in one transaction require PAN or Form 60. Section 269ST of the Income-tax Act bars receiving Rs 2 lakh or more in cash from one person in a day, including through split payments. Tax may apply if the money comes from taxable income such as salary, business earnings, trading or rent. Records such as salary slips and rental agreements can help establish the source.
The Indian Opinion
The claim that crossing Rs 10 lakh is itself illegal or automatically taxable is exaggerated. The rule mainly triggers reporting and possible questions about the money’s source. At the same time, treating repeated cash deposits as harmless is poor advice, especially when records are missing. The practical test is simple: can the depositor match each large entry with credible documents and declared income?
Source: livemint.com
This story was synthesised by AI from the source linked above.
