Cash deposit machines make it easy to put money in, and that is exactly why people worry about tax. Depositing cash is not illegal and there is no “maximum” you are forbidden to deposit. What the rules do is make large cash deposits visible to the Income Tax Department. Three thresholds matter.
1. ₹50,000 in a single day: PAN required
Quoting your PAN is mandatory for cash deposits exceeding ₹50,000 in any one day with a bank. If you do not have a PAN, you fill in Form 60 instead. This is the reason CDMs cap cardless deposits just below ₹50,000 (₹49,900 at SBI), while card deposits from PAN-linked accounts can go higher. See how SBI CDM deposits work.
2. ₹10 lakh in a year in savings accounts: the bank reports it
Banks file a Statement of Financial Transactions (SFT) with the Income Tax Department. Cash deposits into a person’s savings accounts that add up to ₹10 lakh or more in a financial year are reported. For current accounts, the reporting level is ₹50 lakh. Deposits are added up across branches using your PAN.
Being reported is not a penalty. It means the department can compare the deposits with the income you declare. If the cash comes from income you have shown in your return, a gift, a property sale or similar, keep the paperwork.
3. ₹20 lakh in a year: PAN or Aadhaar must be quoted
Since May 2022 (CBDT notification 53/2022), PAN or Aadhaar must be quoted when cash deposits or withdrawals add up to ₹20 lakh or more in a financial year across one or more accounts with a bank or post office. If you do not have a PAN, you must apply for one at least seven days before such a transaction.
Withdrawals have their own rule
Large cash withdrawals in a year attract TDS (tax deducted at source) by the bank above set limits, with lower limits for people who have not filed income tax returns for recent years. If you run a cash-heavy business, check your bank’s current TDS thresholds.
For shop owners: receiving cash
A separate rule stops anyone from receiving ₹2 lakh or more in cash from one person in a single day or for a single transaction or event. The penalty can equal the amount received. This affects how you accept money, not how you deposit it.
Practical tips for CDM users
- Link PAN to every account you deposit cash into, so card deposits above ₹49,900 work.
- Keep CDM receipts for large deposits, or download the statement each month.
- Splitting deposits to stay under ₹50,000 a day does not avoid annual reporting, because reporting adds up the whole year.
Common questions
Will I get a notice if I cross ₹10 lakh?
Not automatically. A notice usually follows only if the deposits look inconsistent with your declared income.
Do deposits into someone else’s account count against my limit?
Reporting is based on the account holder’s PAN, so deposits count for the person whose account receives the money.
Last checked: October 2026. India’s new Income-tax Act, 2025 took effect on 1 April 2026 and renumbered many sections and rules; the thresholds above are those published by the Income Tax Department. This is general information, not tax advice; check incometaxindia.gov.in or a tax professional for your situation.
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