Income Tax Rule: How much money can you keep in your bank account, when do you have to pay tax, know the income tax rules..

Nowadays almost everyone has a bank account. Many people are opening savings accounts for government schemes, salary, and other financial transactions. Not only is your money safe in these accounts, but you also get some interest.

Apart from this, having a bank account is mandatory for all digital transactions. But how much money can be deposited in a bank savings account? Is there any limit to it? Is there any problem if the cash balance limit is exceeded? Do you know the limit?

How much money can be deposited in a bank savings account?

Nowadays customers are doing a lot of transactions with savings accounts, but they often have a dilemma as to how much money they can deposit in their savings account. Although there is no upper limit for depositing money in a savings account, the Income Tax Department has fixed a maximum limit of Rs 10 lakh on cash deposits in a savings account in a financial year. Therefore, if you deposit more than Rs 10 lakh, you will come under the purview of income tax. You may have to pay tax on that cash. Also, if you deposit more than Rs 10 lakh, you will have to inform the IT Department about it.

When is income tax levied?
If you have more than Rs 10 lakh deposited in your savings account, the Income Tax Department will keep an eye on you. Banks also give information about accounts with deposits of more than ₹ 10 lakh to the Income Tax Department, due to which you are likely to get a notice. This limit is not limited to savings accounts only but also applies to FDs, mutual funds, bonds, stocks, and foreign currency purchases like forex cards. Be sure to check your deposit history.

Disclaimer: This content has been sourced and edited from Hr Breaking. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.