Saving Account Rules: Keeping so much money in a savings account can be costly, know this before depositing it.

You must have a savings account in some bank. All of us women use savings accounts. One or the other of your savings accounts will also be connected to UPI transactions (UPI transaction rules). Many times you must be using this account to deposit cash and sometimes to withdraw a large amount at once. But do you know (Saving account Rules) that there are some rules related to it that come under the laws and regulations of the Income Tax Department? That is why it is necessary to follow them so you do not have to face any trouble.

Current and savings account rules
According to the income tax rules, there is a limit on cash deposits in a savings account. That is, how much cash can you deposit in a bank account (Current bank account rules) during a fixed period? This limit has been made to keep an eye on cash transactions. So that, money laundering, tax evasion, and other illegal financial activities can be prevented.

According to a report in Forbes, if you deposit Rs 10 lakh or more in a financial year, you will have to inform the IT department (Income tax department rules). However, if you have a current account, this limit is Rs 50 lakh. According to the report, there is no immediate taxation on this cash (savings bank account cash limit), but it is a rule for financial institutions to report transactions above these limits to the Income Tax Department.

What is section 194A
If you withdraw more than Rs 1 crore from your savings account in a financial year, then 2% TDS will be deducted from it (TDS on saving account money). For those who have not filed ITR for the last three years, 2% TDS will be deducted from them, that too only on withdrawal of more than Rs 20 lakh. If such people withdraw Rs 1 crore in this particular financial year (Saving account cash limit), then 5% TDS will be levied. For more information related to women and personal finance, you can click here.

Penalty on withdrawal above the limit
It is worth mentioning that the TDS deducted under section 194N is not categorized as income, but you can use it as a credit while filing an income tax return (ITR file rules).

Under section 269ST of the Income Tax Act, if a person deposits Rs 2 lakh or more in cash (Cash limit in savings bank account) in a particular financial year, then a penalty will be imposed on it. However, this penalty does not apply to withdrawing money from the bank. However, TDS deduction is applicable on withdrawals above a specific limit.

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