Income Tax Rules: Let us tell you that in a normal savings account you can deposit any amount of money and withdraw any amount of money. There is no limit for depositing or withdrawing money in this… Let us know in complete detail in the news below what are the income tax rules related to this.
This is a common question which most of the people raise. People want to know how many savings accounts they can operate simultaneously so that they do not face any problem with income tax. The second question is that what is the maximum balance that can be kept in the savings account so that income tax notice is not received. It is very important for such customers to know that how much of the balance lying in their account is taxed and how much is not.
Actually, annual interest is given by the bank on the savings account, but all the banks have different interest rates. At the same time, some customers do not know that how much money can be deposited or withdrawn from the savings account in a financial year, so that you do not come under the tax net? There are many such misconceptions in the minds of taxpayers regarding savings bank accounts, which need to be removed in time.
How much money can be kept in savings account?
In a normal savings account, you can deposit any amount of money and withdraw any amount of money. There is no limit to deposit or withdraw money in this. However, there is a limit for depositing cash and withdrawing cash by visiting the bank branch. But, through check or online, you can deposit Rs 1 to thousand, lakh, crore, billion or any number of rupees in your savings account and also maintain it as balance.
Tax department will have to answer-
Bank companies have to answer every year to the tax department if customers withdraw 10 lakh or more from the bank. Under the tax law, the bank has to give information about those accounts during the current financial year. This limit is viewed in aggregate for cash deposits of ten lakh rupees or more in a financial year in one or more accounts (other than current accounts and time deposits) of the taxpayer.
You can deposit only this much cash-
The limit of cash deposit in current account is 50 thousand rupees or more. Talking about transactions, Kapil Rana, founder and chairman of Hostbook Limited, says that a person should be aware of Rule 114E of Income Tax regarding income expenditure from the account. With this, he can withdraw or deposit as much money from his savings account in a financial year so that he does not come under the income tax radar.
Tax has to be paid on interest-
The bank account holder has to pay tax on the interest earned on the amount kept in the bank’s savings account. The bank deducts 10 percent TDS on interest. Balwant Jain says that tax has to be paid on interest but tax deduction can be availed on this also. According to Section 80TTA of the Income Tax Act, all persons can get tax exemption of up to Rs 10,000. If the interest earned is less than Rs 10 thousand then tax will not have to be paid.
Similarly, account holders above 60 years of age do not have to pay tax on interest up to Rs 50 thousand. If even after adding that interest to your total annual income, your annual income is not enough to become a tax liability, then you can get a refund of the TDS deducted by the bank by submitting Form 15G.
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