This post has already been read 66 times!
New Bank Transaction Limits 2026: Stay Compliant with Cash, UPI, Gold, Property & Credit Card Rules
Updated for Income Tax Act 2025 Changes | Essential Guide for CMA Students, Professionals & Taxpayers
As we step into 2026, the Income Tax Department has tightened the screws on high-value transactions to promote digital payments and curb black money. Whether you’re handling property deals, managing bank accounts, investing in gold, using UPI for payments, or paying credit card bills, there are strict limits you must follow. Crossing these can trigger notices, hefty penalties up to 100%, or even 84% tax plus penalty on unexplained amounts. This comprehensive guide breaks down every key limit in simple terms, with tables for quick reference. Perfect for CMA aspirants preparing for Final exams, business owners, and everyday taxpayers.
Property Transaction Limits: Bayana, Security Deposits & More
Real estate deals often involve cash, but Section 269ST of the Income Tax Act strictly prohibits receiving ₹2 lakh or more in cash in a single day, single transaction, or related to one event from any person. This applies directly to property bayana (token money), refunds, and rental security deposits. Imagine selling a flat and taking ₹2.5 lakh cash bayana from a buyer – that’s an instant 100% penalty on the entire amount, equal to ₹2.5 lakh!
Key Property Cash Limits
| Transaction Type | Cash Limit | Penalty for Violation |
|---|---|---|
| Bayana (Token Advance) Receipt | Below ₹2 lakh | 100% of amount [Section 271DA] |
| Bayana Refund on Deal Cancellation | Below ₹2 lakh | 100% of amount |
| Rental Security Deposit Receipt | Below ₹2 lakh (also state rent laws cap at 2 months’ rent for residential) | 100% + possible eviction issues |
| Security Deposit Refund to Tenant | Below ₹2 lakh | 100% of amount |
Pro Tip: Always use bank transfers or cheques for property deals over ₹2 lakh. For rentals, new 2025-26 rules under Model Tenancy Act cap residential deposits at 2 months’ rent, but cash rules override. If you’re a landlord in Pimpri-Chinchwad, document everything digitally to avoid scrutiny during ITR audits.
Bank Transaction Limits: Deposits, Withdrawals & Account Rules
Banks report high cash flows under SFT (Statement of Financial Transactions) to Income Tax. Exceeding limits flags your PAN for notices. Savings accounts have tighter scrutiny than current accounts for businesses. RBI allows unlimited accounts, but you must report all in Schedule AL of ITR – miss it, and face ₹10,000 penalty.
Cash Deposit & Withdrawal Thresholds
| Account Type | Cash Deposit/Withdrawal Limit (FY) | Consequence |
|---|---|---|
| Savings Account | ₹10 lakh aggregate | SFT Report → Notice if unexplained (84% tax + penalty) |
| Current Account (Business) | ₹50 lakh aggregate | Same as above |
Transfer Limits: IMPS, NEFT, RTGS
Digital transfers have no hard RBI caps except per-bank daily limits, but stay within these for smooth ops:
| Method | Min Amount | Max Amount | Timing |
|---|---|---|---|
| IMPS | ₹1 | ₹5 lakh | Instant 24/7 |
| NEFT | ₹1 | No limit (bank-dependent) | Batch every 30 min |
| RTGS | ₹2 lakh | No limit | Real-time |
New in 2026: RBI’s standardized BSBD (Basic Savings Bank Deposit Account) – zero balance, full facilities like ATMs, cheques, no minimums. Ideal for CMA students managing tight budgets. Open one to avoid penalties on low-activity accounts.
Gold Holding Limits: Safe Possession Without Tax Queries
Gold jewelry or bars at home? CBDT guidelines set ‘safe harbor’ limits – exceed them without proof, and face 84% tax on unexplained wealth under Section 69A. Wedding gifts or inheritance are exempt if documented (video proof for weddings, deed for inheritance).
| Category | Safe Limit (Gold Jewelry/Bars) | Proof Required Beyond Limit |
|---|---|---|
| Male | 100 grams | Income source, bills |
| Married Woman | 500 grams | Same |
| Unmarried Woman | 250 grams | Same |
For families, aggregate per household. Purchases must match your ITR income. As a CMA pro in Maharashtra, advise clients: Keep bills, get hallmarking, report in AS-9 if business stock.
UPI Transaction Limits: Investments, Bills & Business Rules
UPI’s exploded, but 2026 brings higher limits for specific uses. NPCI raised caps for insurance, investments, taxes to push digital. Businesses: ₹40 lakh FY credits? Mandatory GST registration.
| Purpose | Per Transaction | 24-Hour / Daily Limit |
|---|---|---|
| Insurance/Investment/Tax Payment | ₹5 lakh | ₹10 lakh |
| Credit Card Bill Pay | ₹5 lakh | ₹6 lakh |
| New Bank Account Opening | ₹2 lakh | ₹2 lakh |
| Regular P2P Transfers | – | ₹1 lakh |
| New UPI Registration | – | ₹5,000 (first day) |
- Balance checks: Max 50/day
- Inactive 1 year? UPI ID deactivates
- Business credits > ₹40 lakh FY: GST compulsory
For CMA tool developers: Integrate UPI APIs with these limits in your calculators on cmaknowledge.in.
Credit Card Limits: Cash & Online Payments Scrutinized
Cash payments over ₹1 lakh FY? Banks report under SFT. Online bills over ₹1 lakh? Same. Unexplained spends treated as ‘unexplained expenditure’ – 84% tax hit.
| Method | FY Limit | Reportable to IT |
|---|---|---|
| Cash Payment | ₹1 lakh | Yes, if exceeded |
| Online/UPI Payment | ₹1 lakh | Yes |
Cash Transaction Limits: Loans, Gifts & General Rules
Sections 269SS/269T ban cash loans/deposits/repayments over ₹20,000. Gifts: ₹50,000 tax-free (relatives/wedding exempt). Daily cash receipt: ₹2 lakh max/person.
| Type | Limit | Exceptions |
|---|---|---|
| Cash Receipt (Any) | ₹2 lakh/day/person | Banks, Govt |
| Loan Acceptance/Repayment | ₹20,000 cash | Cheque/EC transfer OK |
| Cash Gift | ₹50,000 tax-free | Relatives, Wedding |
TDS on Cash Withdrawals (Section 194N)
| Withdrawal Amount (FY) | Non-Filers (No ITR last 3 yrs) | Regular Filers |
|---|---|---|
| Up to ₹20 lakh | Nil | Nil |
| ₹20L – ₹1 Cr | 2% | Nil |
| Above ₹1 Cr | 5% | 2% |
Claim TDS back in next ITR. Home cash must be explainable – unexplained = 84% tax.
Quick Summary Table: All Limits at a Glance
| Category | Key Limit | Penalty/Tax |
|---|---|---|
| Cash Receipt | ₹2L/day/person | 100% |
| Loan Cash | ₹20K | 100% |
| Savings Cash Dep | ₹10L FY | Notice/84% |
| Gold (Man) | 100g | 84% |
| UPI Investment | ₹5L txn | – |
| Credit Cash Pay | ₹1L FY | Notice/84% |
Stay safe: Go digital, document everything, match with ITR. For CMA Finals, master Sections 269ST/SS/T, 194N, 69A. Update your financial calculators on cmaknowledge.in with these. Questions? Comment below!
