Bank Account Tips- Do you know how much money you can keep in your bank account, let's know what the rules say.

If we talk about today's scenario, having a bank account has become a common thing in this digital world, transactions have become easy through UPI in smartphones, for which a bank account is also required, but there are certain rules governing these accounts, non-compliance of which can lead to a penalty. Let's know the full details about these rules.

1. Cash deposit limit

Daily cash deposit limit: You can deposit up to ₹ 1 lakh in cash per day in your savings account.

Annual reporting requirement: If your total cash deposit exceeds ₹ 10 lakh in a financial year, you have to inform the Income Tax Department. This limit is higher for current accounts, which has been fixed at ₹ 50 lakh.

2. Transaction monitoring

The purpose of these rules is to prevent illegal activities like money laundering and tax evasion. Financial institutions have to report any transactions above the specified limit to the Income Tax Department.

3. Tax Deduction at Source (TDS)

Withdrawals above ₹1 crore: If you withdraw more than ₹1 crore in a financial year, a TDS of 2% will be deducted.

For non-filers: If you have not filed your income tax return (ITR) for the last three years, a 2% TDS is applicable on withdrawals above ₹20 lakh and a 5% TDS on withdrawals above ₹1 crore.

4. Penalty on cash deposits

Under section 269ST of the Income Tax Act, you may have to pay a penalty if you deposit ₹2 lakh or more in cash in a single transaction within a financial year.