With demonetization on 8-11-2016 there are lot of confusions regarding deposit, withdrawal of money from bank accounts. There is limit placed on all such transactions, especially for withdrawal. In Jandhan accounts deposit limit is up to Rs.50000 only at present. So what is cash deposit limit India which is applicable for savings accounts of customers.
Actually there is no Cash deposit limit on savings accounts in India. Only for people who do not reveal their source of income or have non taxable income credited in their account have to face problems. With withdrawal and demonetizing of old currencies, cash in hand in denominations of Rs.500, Rs.1000 has lost legal tender. Only way of getting new currency is by depositing it in bank accounts or exchanging it for new notes. There is a limit of up to Rs.2000 once a time for exchange of notes. From 19 November 2016, only senior citizens can change old notes from banks. All other cash in value of old Rs.500, Rs.1000 has to be deposited in accounts or used for paying utility bills like Electricity (KSEB), Water, Revenue taxes, fines .etc.
So all citizens are forced automatically to deposit all cash in hand at homes or offices into their bank accounts. All savings accounts are also required to have KYC (Know Your Customer) forms filled in. Many accounts are linked in using Aadhar number. Through this simple way, money deposited under a person’s account in different banks will become consolidated. With Aadhar number linking Income tax can easily access total cash in a person’s account and cross check it with tax returns filed. Till 17 November 2016, it was said that total cash deposits below Rs.2,50,000 from 8-11-2016 to 30-12-2016 will not be checked by Income tax. As per recent news Income Tax is getting ready to check all accounts that has suspicious activity and will include below Rs.2,50,000 savings accounts too.
Non taxable cash deposit in a savings account is up to Rs.2,50,000. If any cash is found to in excess of this limit and if no source of income in revealed for same, it will get up to 30% tax and 200% penalty (30%+ 60%=90% as tax, penalty).
Only 10% of unaccounted money above this limit will be given to account holder. This move by Income tax has given panic to everyone. Only those persons who have not properly filed Income tax returns have to face these problems.
All these information was given to General public earlier through IDS (Income Declaration Scheme). Many Lakhs or crores were deposited by people at this time.
Indian Government realized that black money in hands of people were more than that and decided to go with strong harsh step of currency demonetization.
Hindi News on 250000 Limit on deposits in India
With latest reports IT Department is also eyeing on savings account deposits below Rs.250000 in certain cases.
At present cash deposits up to Rs.49000 into savings account can be done without PAN number. For making deposits of Rs.50000 or more PAN number is mandatory in all banks as per instructions of Reserve Bank of India.
In case of savings accounts cash deposit limit is Rupees Two Lakhs Fifty Thousand, while for Current accounts it’s Rs.12,50,000.
Few changes have been made by Income Tax department regarding checking of bank accounts from 18 November 2016. Earlier it was mentioned that savings accounts of housewives, small scale employees .etc. will not be checked.
It was found that many people used these accounts to deposit their black money by giving commission to them. To prevent such activities of hiding black money by upper class, it was decided to check all savings accounts.
IT department has started sending notices to account holders seeking revelation of source of income and explanation regarding cash deposits.