How to deposit cash in salary account

A Salary Account is a type of savings bank account dedicated to receiving your monthly salary deposited by your employer. It has plenty of benefits, which you can read here. However, it is not bound to accept only your salary, but also cheques and cash deposits from anyone. Treating it like a Savings Account, you can also withdraw money from it.

Depositing cash

Though banks allow depositing cash in Salary Accounts, there might be instances when you might need to declare the source of the money – whether earned from another source or gifted by someone. This depends on the amount of cash being deposited; if it is large, then declaration of the source is necessary. The details of the same can be checked through NetBanking or by calling on your bank’s toll-free number.

In such cases, if necessary, tax obligations need to be fulfilled. In case the money deposited in a Salary Account is an additional income from another source, then its disclosure in your annual income tax returns is necessary. And if the cash is a gift, it is recommended that you check the tax liability on it and stay safe by making a timely payment. Note that cash gifts from relatives are exempt from income tax.

For Bank employees

Bank employees are the only individuals who cannot deposit cash in their respective Salary Accounts. The purpose behind this is preserving transparency in the bank’s business. However, they can open a separate Savings Account in their own bank or a different bank for depositing cash.

How many times can you deposit cash?

You can put in cash in the Salary Account anytime but be aware that if the monthly number of ‘over-the-counter transactions’ done for the account crosses the specified number, it may attract a small fee. Over-the-counter transactions include depositing cheques, cash and withdrawing cash.

Looking to apply for a Salary Account from HDFC Bank? Click here to get started!

* The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.