To what extent can the IT department impose fines?
Published
A person may be subject to 60 percent tax, 25 percent surcharge, and 4 percent cess on any cash deposit of more than Rs. 10 lakh in the bank if they are unable to provide information regarding the source of their income. This does not preclude you from completing a cash transaction for more than Rs. 10 lakh, though. You can deposit cash without fear if you can provide evidence of this income. From a financial standpoint, though, it makes more sense to invest the money elsewhere where you can earn higher returns or convert it into FD rather than keeping a large amount of cash in your savings account.
