Income Tax: Income Tax will take action if you keep so much money in Savings Account, know these rules..

If you have a savings account, then you should know how much money you can keep in the savings account. How much money should be in your bank account in a financial year? So that the Income Tax department does not keep an eye on your bank account. If you deposit money in your savings account beyond a limit, you may receive an Income Tax notice, in which you will have to tell the Income Tax Department from where you got this money. If you could not answer where did the money come from? So you may get stuck.

How much cash can you deposit in your bank account?
Cash deposit means depositing money in your bank account manually or through methods like money transfer or ATM. People often deposit money in banks to make bank transactions or to keep it safe. Once the deposit is made you can withdraw the money and it is still known as a cash deposit.

These are the rules of income tax
According to Income Tax, the limit for depositing cash in a savings account during a financial year is Rs 10 lakh. According to Section 114B of the Income Tax Act 1962, all banks or financial institutions have to inform the Income Tax Department when they deposit large cash.

Income tax keeps an eye on savings account
The Income Tax Department keeps an eye on cash deposits. He keeps an eye on every savings account whether the money deposited exceeds the prescribed limit or not. This calculation (cash calculation) is done keeping in mind all the bank accounts of a person.

If you have multiple banks then be more careful
If you have multiple bank accounts, then it is important for you to know what is the limit for keeping cash in bank accounts. If you know this, you will be able to avoid income tax. According to the rules, if you keep more than a certain limit in your savings account, then it will be subject to income tax. You will also have to pay tax again.

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