Income Tax Rules 2024: Tax will have to be paid if you deposit more money than this limit in a day in a savings account..
In today's time, it is very important to have a bank account. It becomes easy to do financial transactions through a bank account. At the same time, there are different types of bank accounts. People open many accounts in the bank like savings accounts, current accounts, and salary accounts. Different accounts have different benefits. But do you know how much money people can keep in a savings account? Let's know about it...
How much cash can be kept in a savings account?
Often people do a lot of transactions from this account. Most of the transactions in this are of depositing and withdrawing money. Most of the people keep their savings in this account. But when the question comes how much money can be kept in a savings account? Let us tell you that there is no limit to how much money can be kept in a savings account. You can keep as much money as you want in a savings account, but you have to take special care of one thing. If the money deposited in your savings account comes under the purview of ITR, then you have to give information about it.
How much amount can be deposited in a day?
You can deposit a maximum of Rs 1 lakh in your savings account in a day. However, if you deposit cash occasionally, this limit can be increased to Rs 2.5 lakh. As far as the annual limit is concerned, a maximum of Rs 10 lakh cash can be deposited in a savings account.
If you make payments above this limit, you will have to pay tax on the deposited cash. Income tax is not levied on the amount of cash but on the interest received on it.
The tax department will have to respond
Bank companies have to respond to the tax department every year if customers withdraw an amount of Rs 10 lakh or more from the bank. Under the tax law, the bank has to provide information about those accounts during the current financial year. This limit is seen overall for cash deposits of Rs 10 lakh or more in a financial year in one or more accounts of the taxpayer (other than current accounts and time deposits).
You can deposit only this much cash
The limit of cash deposits in a current account is 50 thousand rupees or more. Talking about transactions, Kapil Rana, founder and president of Hostbook Limited, says that a person should be aware of Income Tax Rule 114E regarding income and expenditure from the account. This means that he should withdraw or deposit only that much money from his savings account in a financial year so that he does not come under the radar of income tax.
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