This is the common query I came across, how much money we can keep in bank without tax. Although there is no cap on the amount of money you can maintain in your bank account under Indian tax regulations, cash deposits into savings accounts are subject to strict oversight. Without penalties, you can keep up to Rs. 10 lakhs in your bank account.
How much Cash can You Keep in a Savings Account without Tax?
The maximum cash deposit you can make across all savings accounts without mandatory reporting is Rs 10 lakh during a fiscal year. Deposits beyond this trigger a reporting requirement under Section 114B of the Income Tax Act.
There’s also a daily cash deposit limit of Rs 50,000 per transaction; deposits beyond this require PAN details or submission of Form 60/61.
Additionally, Section 269ST prohibits receiving or depositing Rs 2 lakh or more in cash in a single day for one transaction. Breaking these rules doesn’t result in tax, but makes the bank report the transaction and may trigger an Income Tax Department inquiry.
If you can't satisfactorily explain the money’s source, you face penalties, up to 60% tax with surcharge and cess on the unexplained amount.
Any amount can remain in your account, but it's the deposit flow that’s regulated. Depositing up to Rs 10 lakh/year is fine. Deposit of over Rs 50,000 in one transaction require PAN or Form 60.
Get Help in Tax Assessment and Payment by Experts at NoBroker.
Your Feedback Matters! How was this Answer?
Shifting, House?
✔
Lowest Price Quote✔
Safe Relocation✔
Professional Labour✔
Timely Pickup & Delivery
Intercity Shifting-Upto 25% Off
Check Prices
Intracity Shifting-Upto 25% Off
Check Prices
City Tempo-Upto 50% Off
Book Now
How much Money We can Keep in Bank without Tax?
sia
1239 Views
1
5 months
2025-07-13T07:28:05+00:00 2025-07-13T07:28:07+00:00Comment
Share