New Delhi, June 3 -- Many bank customers assume they are free to withdraw any amount from their accounts since the funds already belong to them. However, there are regulations governing large cash transactions, and they must be complied with to avoid scrutiny from the income tax department.

While there is no prohibition on withdrawing more than Rs.10 lakh from a bank account in a financial year, high-value cash transactions are subject to reporting requirements and other tax provisions under the income tax law.

Here are the reporting requirements and other details.

According to Ashish Jha, an Internal Audit Officer at a PSU, cash withdrawals from a bank account are generally not subject to income tax if the taxpayer can satisfactorily ...