When your fixed deposit will be reported to the Income-tax department under draft rules 2026

Under the draft Income-tax Rules 2026, new fixed deposits of ₹10 lakh or more in a financial year by a person need to be reported by the bank or the post office to the Income-tax Department in the statement of financial transactions. However, this limit does not apply to fixed deposit renewals.

No reporting is mandatory for cash deposits of ₹10 lakh or more by a person in his/her fixed deposit account, provided the person is holding a PAN card. For non-PAN holders, this limit is ₹5 lakh.

Here's what the draft rules say with respect to high-value fixed deposit transactions:

1. Cash deposits in one or more accounts (other than a current account and time deposit) of a person

Cash deposits in a financial year in one or more account of a person, aggregating to

• ₹10 lakh or more for a person having a permanent account number;

• ₹ 5,00,000 or more for a person not having a permanent account number

2. One or more time deposits (other than a time deposit made through renewal of another time deposit) of a person

• Amount aggregating to ₹10 lakh or more in a financial year, for a person

Please note that the draft rules are currently open for public feedback and they may see some changes before final implementation with effect from April 1, 2026.

Is this new?

The existing Income-tax rules 1962 also have an almost similar provisions with respect to reporting of high-value FD transactions by bank customers.

Here's what it says

• One or more time deposits (other than a time deposit made through renewal of another time deposit) of a person aggregating to ₹10 lakh or more in a financial year of a person.

• Cash deposits aggregating to ₹10 lakh or more in a financial year, in one or more accounts (other than a current account and time deposit) of a person.