Banks must report cash deposits over ₹10 lakh; PAN required for large transactions; follow best practices for compliance.
This infographic explains the rules and process for reporting high-value cash deposits in India. Banks are required to report cash deposits exceeding ₹10 lakh in a financial year (₹50 lakh for current accounts) to the Income Tax Department. Providing a PAN is mandatory for deposits over ₹50,000 in a single transaction. Financial institutions must file Form 61A (Statement of Financial Transactions) for such deposits. The Income Tax Department may issue notices if deposits do not match declared income. Maintain proper records and file accurate ITRs to ensure compliance.