Depositing big cash sums? Tax rules, I-T notices and what to watch out for

Depositing large cash sums into bank accounts can attract Income Tax department attention, warns Surajkumar Shetty, partner at JSA Advocates and Solicitors. According to tax rules, banks must report cash deposits exceeding Rs 10 lakh in savings accounts and Rs 50 lakh in current accounts, and even deposits over Rs 50,000 in a single day require PAN quoting. Experts advise maintaining proper documentation to justify sources of funds, as failure to do so may lead to scrutiny, penalties, and even prosecution. Read Article