India, Oct. 6 -- Cash deposits in a savings account can attract reporting requirements under the Income Tax Department's Statement of Financial Transaction (SFT) framework. However, it is important to understand that Rs 10 lakh is not a maximum balance limit for a savings account. The threshold relates specifically to the aggregate amount of cash deposited during a financial year.

According to the Income Tax Department, cash deposits aggregating to Rs 10 lakh or more in one or more accounts, other than current accounts and time deposits, during a financial year are reportable under SFT. The reporting is done by the bank, cooperative bank or Post Master General, rather than by the account holder directly.

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