Banks report cash deposits of Rs 10 lakh or more in a financial year in savings accounts to the tax department and this is a yearly total and not a single deposit. For current accounts, the reporting level is Rs 50 lakh in a year. An income tax notice for cash deposits usually follows from such reports, and many account holders are noticing that the yearly figure is counted across their deposits and not on one day.
As per FinPulse India, the same Rs 10 lakh yearly level for savings accounts has been continued under the rules in force from 1 April 2026, with the provision now placed under Rule 237 instead of Rule 114E.
Time deposits form a distinct reportable class. Tax2win points out that if an individual holds time deposits of Rs 10 lakh or more within a financial year, these amounts are reported, while renewals of earlier time deposits are not counted toward this total.
How deposits add up across accounts
The yearly figure is counted across the accounts of one account holder and it is not looked at deposit by deposit. CA Club India gives an example from the rules of FY 2023-24, where an individual deposits Rs 5 lakh in one savings account and Rs 6 lakh in another savings account in the same year. The two amounts are combined, and the total of Rs 11 lakh is then compared with the reporting level.
Under the rules before 1 April 2026, PAN or Form 60 was needed for cash deposits of more than Rs 50,000 in a single day, as per Rule 114B, and this was replaced by the yearly Rs 10 lakh test from 1 April 2026.
FinPulse India reports that from 1 April 2026, under Rule 159, PAN is required when the cash deposits in a financial year reach Rs 10 lakh, and that this replaces the earlier single day test. A summary of a CBDT notification on a PATTIC Forum post also mentions a yearly PAN trigger across all accounts.
The Rs 2 lakh cash-receipt limit
Section 186 of the Income-tax Act, 2025 (earlier Section 269ST) is a separate rule, and it applies to receiving cash and not to depositing it. India TV News reports that a person may not receive Rs 2 lakh or more in cash from one person in a day, in a single transaction, or for one event. A breach attracts a penalty equal to the amount received, under Section 451 of the Income-tax Act, 2025.
