We keep our savings in savings account. But, there is a limit in this too. If there is more money in our account than this limit, then we can come under the radar of the Income Tax Department. Many people are still unaware of this.
Many people do not know how much money should be kept in the savings account. In such a situation, many times they keep more money than the limit in the account and get nervous when the tax notice comes. In this article, We will tell you in the article what is the limit for keeping money in the savings account.
Bank Account Money Deposit Rule In Savings Account
If you have a lot of money deposited in your savings account, then you need to be cautious. The Income Tax Department keeps an eye on big transactions and if someone deposits more money than the limit in the account, then he has to give information about it. Many people are unaware of this rule and get worried when they get a notice. Therefore, it is important that you understand these rules beforehand.
Do Not Keep Money More Than This Limit
If more than Rs 10 lakh is deposited in a savings account in a year, then it is considered a high-value transaction. In such cases, the bank sends its information to the Income Tax Department. After this, the department investigates where the money has come from and whether the correct information has been given or not.
Apart from this, if you deposit more than Rs 2 lakh in a day, the bank can also ask you the reason for this.
Income Tax Department Check Your Every Transaction
The Income Tax Department keeps a close eye not only on your salary or income but also on your banking behavior. If you deposit or withdraw an amount more than a certain limit in your savings account, the department can send you a notice. The reason for this is that the government now wants transparency in every financial activity.
What Is The Limit Of Cash Deposit And Withdrawal
According to the rules of the Reserve Bank of India (RBI), you can deposit a maximum cash amount of up to ₹ 10 lakh in your savings account in a year without any doubt. But as soon as this amount crosses this fixed limit, the bank informs the Income Tax Department about it. After this, an inquiry or notice may come from the department, in which you will have to clarify where such a large amount came from.
When is PAN card mandatory
If a person deposits more than Rs 50,000 in a day, he has to provide his PAN Card details to the bank. Those who do not have a PAN Card have to submit Form 60 or 61.
What To Do If A Notice Comes?
Many times, for some reason, we make such a big transaction and do not give information about it to the Income Tax Department. In such a situation, we get a notice from the department. Now the question arises that what should we do in this situation? If you get any such notice, then you should respond to it. Along with the reply to the notice, you should also give information about the documents related to it. These documents include statements, investment records, or assets etc. According to experts, if you have any problem in responding to the notice or regarding the documents, then you can consult a financial advisor.
Conclusion
In such a situation, many times they keep more money than the limit in the account and when the tax notice comes, they get nervous. We will tell you in this article what is the limit for keeping money in a savings account. If you have any question regarding this post, then you can tell us by commenting in the comment box given below. Your feedback and suggestions are welcome as always. Thank you.
