One of my friends who has received an amount of Rs 35.00 Lac's from sale of immovable property whose consideration was received in the form of Cheque which he deposited in his Saving Bank Account. He wish to withdrawal the said money from bank in cash.
In the matter the query is that : (1) Is there any monetary limit from IT Dep't regarding withdrawal money in Cash from saving bank account ? (2) If yes, then how much maximum money can be withdrawal without any trouble.
It is known that depositing of Cash of Rupees More than 10.00 Lacs with be reported by the bank in the Annual Information Return (AIR)...... Is there any limit for reporting by bank for CASH WITHDRAWAL from SAVING BANK Account.
Can he opened the Current Account..... Transfer the Saving Bank Account into that Current Account and then withdrawal the amount in Cash ....
KINDLY SUGGEST THE BEST OPTION.
Your earlier reply in the matter will be very much helpful with thanks and regards.
13 July 2017
No limit for cash withdrawl. Some savings account have the condition that if withdrawl is more than 10% of the balance, then it should pre informed to the concerned branch. (This is because the branch can accordingly arrange for the cash)
Querist :
Anonymous
Querist :
Anonymous
(Querist)
13 July 2017
Thanks a lot Amol Ji
Pls also mention does CASH withdrawal of that amount 35.00 lacs from Saving Bank Account will be reported in AIR by Banks ?
One of Chartered Accountants told to me that withdraw amount is also covered now in Annual information Return (AIR)
13 July 2017
(1) Is there any monetary limit from IT Dep't regarding withdrawal money in Cash from saving bank account ? No there is no monetary limit.
(2) If yes, then how much maximum money can be withdrawal without any trouble. It is known that depositing of Cash of Rupees More than 10.00 Lacs with be reported by the bank in the Annual Information Return (AIR)...... Is there any limit for reporting by bank for CASH WITHDRAWAL from SAVING BANK Account. No limit
Can he opened the Current Account..... Transfer the Saving Bank Account into that Current Account and then withdrawal the amount in Cash .... Yes he can. Please note that to do so he will need shops and establishment license as part of bank kyc requirement. Note that in case of current accounts cash deposits or cash withdrawals aggregating to 50 lakhs or more in a year are reported.
Apart from AIR Reporting, Income Tax Department has a Central Information Bureau which collects data, the parameters of which are not in public domain. High Cash Withdrawals may be part of this.If you need to withdraw cash do it over a couple of months and more importantly have a valid reason as to why it is being done.
Apart from Income Tax Considerations please note that banks are required to report certain transactions to the Financial Intelligence Unit. These reportings are done under the Prevention of Money Laundering Act 2002 as under Cash Transaction Reports All cash transactions of the value of more than rupees ten lakhs or its equivalent in foreign currency;
All series of cash transactions integrally connected to each other which have been individually valued below rupees ten lakh or its equivalent in foreign currency where such series of transactions have taken place within a month and the monthly aggregate exceeds an amount of ten lakh rupees or its equivalent in foreign currency.
13 July 2017
Dear Anand. .....you wrote that for opening current account he needs shops and establishment liscence.... This is true in NORMAL cases..... but current account can also be opened without such a liscence., please note.
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