Income Tax Rule: Before depositing money in Savings Account, know these rules of Income Tax..

This is a common question that most people raise. People want to know how many savings accounts they can operate simultaneously so that they do not face any problems with Income Tax. The second question is 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 how much of the balance in their account is taxed and how much is not.

Interest is earned on depositing money in a savings account-
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 At the same time, some customers do not know how much money can be deposited or withdrawn from the savings account in a financial year, so that they do not come under the tax net.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 a savings account?
In a normal savings account (Savings Account Cash Limit), you can deposit any amount of money and withdraw any amount of money. There is no limit for depositing or withdrawing money in this. However, there are limits to 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 maintain it as a balance.

The tax department will have to answer
Bank companies have to answer to the Tax Department every year if customers withdraw amounts of Rs 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 Rs 10 lakh 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 deposits in the current account is Rs 50 thousand or more. Talking about transactions, Kapil Rana, Founder and Chairman, of Hostbook Limited, says that a person should be aware of Income Tax Rule 114E regarding the income and expenditure made from the accounts. With this, he can withdraw or deposit only that much money from his savings account in a financial year so that it does not come under the income tax radar.

The 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 savings account of the bank. 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 80 TTA of the Income Tax Act, all persons can get tax exemption of up to Rs 10 thousand. 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 50,000. 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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