Savings Account Rules: In today’s time, everyone has a bank account to get the facility of digital transactions and online payments. Savings account is the most used account, but it has some limitations, which most people are unaware of. A limit has been set for depositing and withdrawing money in a savings account (Saving Account Cash Limit), violating which you will have to face a notice. If you keep or deposit more money than the prescribed limit in a savings account, it is necessary to give information to the Income Tax Department under section 114B. Let us know what is the limit of a savings account, crossing which will put you on the radar of the Income Tax Department.
If you deposit more money than the prescribed limit (Saving Account Cash deposit Limit) in your savings account, then you may get a notice from the Income Tax Department. Under this, according to section 114B, the bank has to give information about every large amount deposited to the Income Tax Department.
This step has been taken to prevent tax evasion and increase the transparency of financial transactions (cash transactions rules). Therefore, if you are depositing money on a large scale, then you should know about its consequences and be careful. If you want to avoid action or notice of the Income Tax Department (IT notice rules), then definitely know the limit of keeping money in the savings account.
This is how Income Tax keeps an eye on every transaction-
The Income Tax Department keeps an eye on every transaction of every person. For this, your PAN card is linked to your account. Therefore, whenever you deposit or withdraw money in the account through digital, online transfer, ATM or manually, the Income Tax (Income tax new rules) also gets information about it.
Limit of keeping money in savings account-
If we look at the rules of Income Tax, then there is a fixed limit of Rs 10 lakh for cash deposit in a bank account (bank account rules) in a financial year. If more than this limit is deposited, then the concerned bank has to inform the government department. This process takes place under Section 114B of the Income Tax Act 1962, and its purpose is to ensure that more money than the prescribed limit is not deposited in any account, if this is the case then the customer will have to follow the income tax rules. The department monitors such transactions, so that any illegal activity can be prevented.
Notice comes in this situation-
There are also rules for sending notices from the Income Tax Department. Every year the amount deposited in a financial year is calculated by combining all the accounts. If there is more money than a certain amount in someone’s account, then it is looked at by the department and a notice can be issued. If the amount is more than this, the person may have to pay tax (tax payment rules). These rules apply to all types of accounts, and its purpose is to ensure that every transaction is reported correctly and there is no illegal activity.
This is how tax has to be paid on interest-
If a person earns an income of Rs 10 lakh every year and he gets interest of Rs 10,000 on this income, then his total income is Rs 10,10,000. If a person keeps more money than the prescribed limit (saving account cash deposit rules) in a year, then it is necessary to inform the department. If this is not done, the department can take action. This rule applies to everyone, so that any kind of wrong information can be avoided.
