Reporting-High-Value-Cash-Deposits-in-India-Rules-Process by Return Filings Via Flickr: Understanding how banks and the Income Tax Department track large cash deposits is critical for compliance in India: 1️⃣ Cash Deposit Limits & Mandatory Reporting Banks are required to report cash deposits above ₹10 lakh in a savings account or ₹50 lakh in a current account in a financial year under Section 285BA of the Income Tax Act. 2️⃣ PAN Requirement for High-Value Transactions Cash deposits exceeding ₹50,000 per transaction must be backed by a valid PAN, helping the IT Department trace large financial activities and prevent black money circulation. 3️⃣ Reporting via Form 61A (SFT Filing) All banks and NBFCs must report such deposits through Form 61A, also called the Statement of Financial Transactions, submitted annually to the Income Tax Department. 4️⃣ Scrutiny Notices: Section 142(1) & 148 Discrepancies between reported cash deposits and declared income may lead to IT notices under Section 142(1) (inquiry) or Section 148 (reassessment), prompting legal response and documentation. 5️⃣ Best Practices for Taxpayers ✔️ Maintain proper documentation of income ✔️ Avoid cash structuring or splitting transactions ✔️ File accurate ITRs timely ✔️ Be transparent with your financial activities to avoid scrutiny By #ReturnFilings 📱 Follow us on Instagram: @Return.Filings 🐦 Twitter: @ReturnFilings1 📧 Contact in bio