Are Your Savings Account Transactions Compliant?
The government has implemented specific rules to monitor cash transactions. Staying compliant helps avoid penalties and ensures hassle-free banking.
Deposit Limits in Savings Accounts
The Income Tax Department monitors cash deposits exceeding specific limits:
| Account Type | Annual Deposit Limit | Action Required |
| Savings Account | Over ₹10 lakh | Reported to Income Tax Department |
| Current Account | Over ₹50 lakh | Reported to Income Tax Department |
- Transactions exceeding these limits may trigger inquiries.
- The reporting system discourages unaccounted cash flows.
Cash Withdrawal Rules and TDS
Avoid unnecessary deductions by staying informed about TDS rules:
| Annual Withdrawal Amount | Applicable TDS Rate | Filing Status |
| Exceeding ₹1 crore | 2% | For all taxpayers |
| Between ₹20 lakh–₹1 crore | 2% | For non-ITR filers |
| Over ₹1 crore | 5% | For non-ITR filers |
- Section 194N ensures accountability for high-value cash withdrawals.
- Filing your ITR regularly reduces TDS rates and keeps finances smooth.
Did You Know?
Under Section 269ST, you cannot accept over ₹2 lakh in cash from a single person in one day.
Benefits of Compliance
Following these guidelines ensures:
- A clean financial record with no legal complications.
- Support for India’s goal of achieving a cashless economy.
Stay informed and follow these rules for secure and compliant banking!