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Cash depositing limits

Supriya Raj (Student) (52 Points)

18 November 2016

What is the limit of depositing cash in an individual's account if he has two saving account and a CC Account. Till what extent he can deposit in all these accounts without showing PAN. Will the department raise question if he is depositing cash within the limits specified by the government;?

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Hitesh Khanna (Accounting & Finance Taxation Company Law Audit ) (839 Points)
Replied 19 November 2016

Well practically speaking there is no limit for depositing cash in savings / current account.
What right now the Ministry of Finance have said is that Cash deposit upto 2.5 lacs in savings account and upto 12.5 lacs in current account can be made and shall be concidered as cash deposit within normal limits. Please note that this limit of 2.5 lacs is not for each bank account held by the assessee but refers to the Gross Amount deposited in all the accounts held by him.
Now incase a person is not providing PAN or doesnot have a PAN number , deposit amount is restricted to Rs. 49000 per bank account number. Moreover Govt is issuing new updates and making laws more rigid for those operating without PAN card or not having PAN card.
Thirdly Givt has already started issuing letter to Assesses even though the cash deposit was very much within the limits.

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