Savings Account: You can keep any amount of balance in the savings account, but some rules have been made regarding cash. According to the rule, the bank has to inform the Income Tax Department if more cash is deposited than the limit. Understand about it here.
Savings Account: In today’s time, savings account in the bank is necessary for everyone. It is necessary to have a bank account to take advantage of all the government schemes, while digital transactions cannot be done without it. There is no restriction on opening a bank account in India, due to which every person has two or more bank accounts. Your money is also safe in the savings account and from time to time the bank also gives interest on this deposited amount. According to the rule, it is necessary to keep a minimum balance in all except zero balance accounts, otherwise the bank charges you a penalty. But there is no talk about how much maximum money can be kept in the savings account. Let us tell you about this-
Know how much money can you keep in the account?
According to the rules, you can keep any amount of money in your savings account. There is no limit for this. But if the amount deposited in your account is more and it comes under the purview of income tax, then you will have to tell the source of that income. Apart from this, there is a limit for depositing and withdrawing cash by going to the bank branch. But through cheque or online medium, you can deposit any amount from 1 rupee to thousand, lakh, crore in the savings account.
These are the rules for depositing cash
The rule says that if you deposit 50,000 rupees or more in cash in the bank, then you will also have to provide the PAN number along with it. At the same time, you can deposit up to one lakh rupees in cash in a day. Also, if you do not deposit cash in your account regularly, then this limit can be up to 2.50 lakh rupees. Apart from this, a person can deposit up to 10 lakh rupees in his account in a financial year. This limit is overall for taxpayers with one or more accounts.
IT department keeps an eye on deposits above Rs 10 lakh
If a person deposits more than Rs 10 lakh in cash in a financial year, then the bank has to inform the Income Tax Department about it. In such a case, the person has to tell the source of this income. If the person is unable to give satisfactory information about the source in the income tax return, then he can come under the radar of the Income Tax Department and an investigation can be conducted against him. If caught, a heavy fine can be imposed. If the person does not tell about the source of income, then 60 percent tax, 25 percent surcharge, and 4 percent cess can be levied on the deposited amount.
However, this does not mean that you cannot make a cash transaction of more than Rs 10 lakh. If you have proof of this income, then you can deposit cash without any worry. However, from the perspective of benefits, instead of keeping so much money in your savings account, it is better to convert that amount into FD or invest it somewhere else from where you can get better returns.
Also Read-
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- How much return will you get if you invest ₹1,00,000, ₹2,00,000 or ₹5,00,000 in Post Office NSC? See calculation
- Life certificate can be uploaded from home, EPFO told the step by step process for this
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