Cash in Saving Account Rules – It is very important to have a bank account because money from salary to government schemes comes directly into the account. Most people open a savings account to save money. There are many benefits of a savings account.
But people are not aware of some rules related to savings account. Due to which they have to face many problems. Although there is no limit to deposit money in an account. But if you deposit more than a limit in a savings account, then you may get an income tax notice.
Khabar TV (Bureau): If you have a savings account, then you should know how much money you can keep in the savings account. How much money should be there in your bank account in a financial year? So that, income tax does not keep an eye on your bank account.
Depositing money beyond a limit in your savings account can result in an income tax notice, in which you will have to tell the income tax department where you got this money from. If you are unable to answer where the money came from, you may get into trouble.
How much cash can you deposit in your bank account
Cash deposit means depositing money in your bank account either manually or through methods like money transfer or ATM. People often deposit money in banks to make transactions or to keep it safe. Once the deposit is done, you can withdraw the money and it is still known as cash deposit.
The Income Tax Department keeps an eye on cash deposits. It keeps an eye on every savings account to see if the money deposited exceeds the prescribed limit or not. This calculation is done keeping in mind all the bank accounts of any person.
These are the rules of Income Tax
According to Income Tax, the limit for depositing cash in a savings account during a financial year is Rs 10 lakh. All banks or financial institutions have to inform the Income Tax Department about large cash deposits as per section 114B of the Income Tax Act 1962.
Income Tax keeps an eye on the savings account
The Income Tax Department keeps an eye on cash deposits. It monitors every savings account to see if the money deposited exceeds the prescribed limit or not. This calculation is done keeping in mind all the bank accounts of any person.
If you have many banks then be more careful
If you have multiple bank accounts, it is important for you to know the limit of keeping cash in them. If you know this, you will be able to save income tax.
According to the rules, if you keep more than a certain limit in your savings account, you will come under the purview of Income Tax. You will then have to pay tax as well.