Cash deposit limit in bank sb and current a/c
Querist :
Anonymous
(Querist) 16 January 2020
This query is : Resolved
A person limit on cash deposits and withdrawals in bank sb and current account as per income tax act.
Raj Kumar Makkad
(Expert) 16 January 2020
How are you related with the query? What problem you faced? Explain the query.
Sb Karma
(Expert) 17 January 2020
No limit with valid source in Income Tax.....
So just consult your local bank,how much they allowed per day.its depend on them
Shailesh Kr. Shah
(Expert) 17 January 2020
There is no limit however, TDS is applicable to withdrawal cash after specified amount.
Dr J C Vashista
(Expert) 18 January 2020
What is your locus standi / concern and contents of dispute, if any ?
T. Kalaiselvan, Advocate
(Expert) 26 January 2020
The maximum limit for deposit of cash at non-home branch is Rs 2 lakh per day. Thereafter, the non-home branch manager gets to decide if the bank can accept more cash. Meanwhile, account holders with an average monthly balance of Rs 25,000 can perform free cash withdrawal twice a month.
The Finance Act 2017, took various measures to restrain black money and as an outcome of which, a new section 269ST was inserted in the Income Tax Act. Section 269ST imposed restriction on a cash transaction and limited it to Rs.2 Lakhs per day.
Section 269ST states that no person shall receive an amount of Rs 2 Lakh or more:
In aggregate from a person in a day; or
In respect of a single transaction; or
In respect of transactions relating to one event or occasion from a person.
However, the Central Board of Direct Taxes (CBDT) has clarified that this cash withdrawal limit does not apply for withdrawals from Banks and Post offices.
Thus the provisions of section 269ST will not apply to:
Cash received through an Account Payee Cheque or an Account Payee Bank draft or use of electronic clearing system (ECS) through a bank account.
Any receipt by the Government, any banking company, post office savings bank or co-operative bank.
Transactions of nature referred to in section 269SS.
Such other persons or class of persons or receipts, which the Central government may, by notification Official Gazette, specify.
Rajendra K Goyal
(Expert) 26 April 2020
There is no limit for deposit, however some Banks charges the transaction on the basis of no. of pieces of currency note deposited. the deposit should not be in violation of Income Tax law / Rules.
Some Banks have fixed no. of Transactions allowed in one SB account in one financial year. bank may charge each entry after crossing this limit.
There is no limit for withdrawal from account.
Raj Kumar Makkad
(Expert) 26 April 2020
I do agree with the wise advice of expert T. Kalaiselvan.
Rajendra K Goyal
(Expert) 27 April 2020
Bank may ask for copy of PAN card /Aadhar copy, if the deposit is more than 50,000/- in one instance.
Raj Kumar Makkad
(Expert) 27 April 2020
Banks are demanding PAN and ADHAAR even on deposit of more than Rs. 20,000/- in cash.
Rajendra K Goyal
(Expert) 28 April 2020
Current account as refereed by you, is for large no. of transaction, if the deposit limit is fixed in such account, the whole purpose of maintaining a Current Account would be defeated.
Bank charges monthly / quarterly service charges for maintaining such accounts.
Apart from this cash deposit fee would also be levied on the basis of no. of pieces deposited.
