• Cash flow from capital gains

Is it mandatory to deposit the cash flow from capital gains in banks even if we have paid the capital gain tax. If yes, what is the limit of cash we can keep with us.
Asked 9 months ago in Capital Gains Tax from Secunderabad, Telangana
Once you pay the tax on the capital gains, there is no restriction on the usage of the sale proceeds after investing in assets like house/bonds, if claimed by you. 

As the amount is already in the bank account, there is no restriction on holding the cash. However, if you are referring to any cash receipts in addition to the sale consideration mentioned in the sale deed, such cash receipts become taxable too. 
As per the newly introduced Section 269ST, no person shall receive cash for Rs 2 Lakhs or more towards financial transactions. So if you are receiving cash, it will be in violation of Section 269ST of the Income Tax Act.
B Vijaya Kumar
CA, Hyderabad
857 Answers
55 Consultations

5.0 on 5.0


No, if taxes have been paid, there is no need to deposit in the capital gain deposit account.
Lakshita Bhandari
CA, Mumbai
2016 Answers
63 Consultations

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as such no cash holding limit prescribed in Income Tax Act 1961, you can hold as much as cash with you of which you have valid source/declared cash you can kept.

will you please provide some more details of your case for might be better solution
Lalit Bansal
CA, Delhi
556 Answers
37 Consultations

5.0 on 5.0

If you have paid taxes, then no need to deposit the money anywhere.

You are free to use the money wherever you want.

Please feel to call/ revert in case you need more clarity.

Thanks and regards
Abhishek Dugar
Abhishek Dugar
CA, Mumbai
3452 Answers
155 Consultations

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What do you mean by cash flow - hard cash or money deposited in your bank account.

Trust this clarifies your query. 

Feel free to call / get back in case of further clarifications. 

Thanking You. 

Rohit R Sharma
Rohit R Sharma
CA, Mumbai
2104 Answers
91 Consultations

5.0 on 5.0

Dear sir,
If you have already paid capital gain tax on cash flow from capital gain then there is no need to deposit cash in bank.
There is no such limit specified in law. So, you can keep cash in hand whatever you received.  
Shiv Kumar Agarwal
CA, Delhi
273 Answers
60 Consultations

5.0 on 5.0


It is not mandatory to deposit the money in the bank, so long as you have declared the income in your tax return and paid the taxes due. There is no limit on how much cash you can keep in hand.

Keerthiga Padmanabhan
M.Com., CA, LL.B
Keerthiga Padmanabhan
CA, Greater Mumbai
784 Answers
23 Consultations

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