Savings Bank Account Limit As Per New Income Tax Rules 2026

The Income Tax Act 2025 and Draft Rules 2026 introduce stricter monitoring of savings bank accounts. These changes aim to curb unaccounted money flow, enhance transparency, and simplify compliance for taxpayers while ensuring oversight of high-value transactions.  

Cash Deposit Limit  

Taxpayers can deposit up to ₹10 lakh in cash in a savings account during a financial year without triggering mandatory reporting. Exceeding this limit requires PAN submission and may attract scrutiny under SFT reporting.  

PAN Quoting Requirement  

PAN details must be furnished for high-value deposits, withdrawals, and other financial transactions. This ensures traceability and reduces the risk of tax evasion.  

Compliance And Penalties  

Failure to explain the source of funds beyond the prescribed limit may lead to income tax notices, demands, and penalties. The rules emphasize proactive compliance to avoid legal complications.  

Impact On Taxpayers  

For most individuals, routine deposits remain unaffected. However, those handling large sums-such as business receipts, property transactions, or wedding gifts-must ensure proper documentation and adherence to reporting norms.  

Key Highlights  

• Cash deposit limit in savings account set at ₹10 lakh per year  
• PAN mandatory for high-value deposits and withdrawals  
• Transactions beyond limit reported under SFT framework  
• Non-compliance may lead to notices and penalties  
• Routine deposits remain unaffected for most taxpayers  

Sources: CAclubindia, Economic Times, Mint