Income Tax Rules: Tax will have to be paid if more cash is deposited in the savings account in a day...
Bank account – In today's time, it is very important to have a bank account. It becomes easy to conduct financial transactions through a bank account. At the same time, there are different types of bank accounts. People open many accounts in banks like savings accounts, current accounts, and salary accounts. Different accounts have different benefits. But do you know how much money people can keep in a savings account? Let us know about it...
How much cash can be kept in a savings account?
Often people do a lot of transactions through this account. In this, most transactions of depositing and withdrawing money take place. Most of the people keep their savings in this account. But when the question comes how much money can be kept in the savings account? Let us tell you that there is no limit on how much money can be kept in the savings account. You can keep as much money as you want in a savings account, but you have to take special care of one thing. If the money deposited in your savings account comes under the purview of ITR, then you will have to give information about it.
How much amount can be deposited in a day?
You can deposit a maximum of Rs 1 lakh in your savings account in a day. However, if you deposit cash occasionally then this limit can be increased to Rs 2.5 lakh. As far as the annual limit is concerned, a maximum of Rs 10 lakh can be deposited in a savings account.
If you pay more than this limit then you will have to pay tax on the deposited cash. Income tax is not imposed on the amount of cash but on the interest received on it.
If you get more than Rs 10,000 interest on your bank deposit, you will have to pay tax on it.
The tax department will have to answer
Bank companies have to reply 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 seen in aggregate for cash deposits of Rs 10 lakh or more in one or more accounts (other than current accounts and time deposits) of the taxpayer in a financial year.
You can deposit only this much cash
The limit of cash deposits in 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.
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