Can I Withdraw 10 Lakh Cash from Bank?

Withdrawing Rs. 10 lakh, your bank must report the transaction to the Income Tax Department. So, can I withdraw 10 lakh cash from bank? In India, withdrawing Rs. 10 lakh in cash from your savings account is generally permissible, but it comes with important regulatory limits under the Income Tax Act. Under current income tax regulations, the total cash deposits or withdrawals in a savings account during a financial year (April 1 to March 31) should not exceed Rs. 10 lakh to avoid automatic reporting to tax authorities under Section 114B.

Can We Withdraw 10 Lakhs from Bank?

1. If you withdraw exactly Rs. 10 lakh in a year, it safely falls just within the threshold.

2. Further, individual cash transactions are also regulated under Section 269ST, which states that no person may receive Rs. 2 lakh or more in cash from a single individual on a single day or occasion, or related transactions in aggregate.  

3. In addition, banks must collect your PAN details if the cash withdrawal in a single day exceeds Rs. 50,000 in one transaction. You may otherwise need to furnish Form 60/61.

4. You can withdraw Rs. 10 lakh cash in a financial year from your own savings account, but such high-value withdrawal will trigger mandatory reporting by the bank under tax regulations.

Since the Rs. 10 lakh limit applies collectively to cash deposits and withdrawals, combining both could breach the threshold.

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My uncle recently was withdrawing a big sum of money from the bank and I asked him, can I withdraw 10 lakh cash from bank? He said yes, but it comes with certain restrictions, reporting requirements, and possible tax deductions. Banks and the Income Tax Department closely monitor large cash transactions to ensure compliance with financial regulations. Here\'s what you need to know before making such a withdrawal.

Can I Withdraw 10 Lakh Cash from Bank by Cheque?

Most banks allow cash withdrawals of up to Rs. 1 lakh per day through a cheque. However, for higher amounts, you may need prior approval from the bank.

Reporting Requirements:

1. Banks report cash withdrawals of Rs. 10 lakh or more to the Reserve Bank of India (RBI).

2. If your total cash withdrawals exceed Rs. 10 lakh in a financial year from a savings account or Rs. 50 lakh from a current account, banks report it to the Income Tax Department.

3. The tax department uses analytics to check if the cash withdrawal aligns with your income and past transactions. Unusual activity may trigger an inquiry.

Withdrawing Rs. 10 lakh in cash is possible, but it comes with monitoring and possible tax implications. If the amount is for legitimate purposes, it’s always advisable to use online transfers or demand drafts to avoid unnecessary scrutiny.

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What is the Withdrawal Limit for Axis Bank ATM?

Hey buddy. Since you never know when you\'ll need money, I constantly tell my family to keep an emergency fund. Many of you believe you can withdraw as much money in a day as you like from the ATM, but that isn\'t the case. Sometimes, it is impossible to get a 10 lakhs loan immediately. Coming to your query, can I withdraw 10 lakh cash from bank? Yes, you can, but there are certain guidelines which I added below for you.

Is It Possible to Withdraw 10 Lakh Cash from a Bank?

Yes, you can withdraw 10 lakhs in cash from a bank in India, but there are specific regulations, limits, and tax implications you should know.

1. The Reserve Bank of India (RBI) does not impose a specific cap on cash withdrawals from savings or current accounts. However, banks may have their own withdrawal limits for security and operational reasons. Large cash withdrawals may require prior notice of the bank.

2. If you withdraw 10 lakh or more in a financial year, you must provide your Permanent Account Number (PAN). Banks may also request additional KYC (Know Your Customer) documents for verification.

3. According to Section 194N of the Income Tax Act, cash withdrawals exceeding 1 crore in a financial year attract TDS (Tax Deducted at Source) at 2%.

4. For non-filers of ITR (Income Tax Return) in the last 3 years, TDS applies at:

5. 2% for withdrawals above 20 lakh

6. 5% for withdrawals above 1 crore

7. Frequent large withdrawals may attract scrutiny from the Income Tax Department. Some banks require prior intimation (24 to 48 hours) for high-value cash withdrawals. There may be daily cash withdrawal limits for security reasons.

Instead of cash withdrawal, I would suggest you consider digital transactions like RTGS, NEFT, IMPS, or cheque payments for safety and compliance. This is all about can I withdraw 10 lakh cash from bank.

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How Can You Withdraw Money from a Saving Bank Account 

Hi there. I can help you by answering whether can I withdraw 10 lakh cash from bank in India or not. The answer to your question is yes, you can withdraw Rs. 10 lakh in cash from your bank account in India. But, there are some conditions to it, which I will share with you below.

Can I Withdraw 10 Lakhs From Bank?

As per the rules of the RBI, banks are supposed to monitor cash transactions and withdrawals of Rs. 10 lakhs and more. So, you as an account holder, need to inform the bank at least one to two working days before the withdrawal.

The bank will approve your withdrawal and only then you will be able to withdraw the amount. I have an account at Axis Bank and did withdraw a big amount a while ago and had to go through this process.

However, the process for withdrawal can be different from one bank to another. So, you should inform the bank and ask them for the formalities related to the withdrawal. You may be asked to show some documents if needed.

This is all I have to share with you. I hope you have now learnt how to withdraw 10 lakh from bank in India.