Savings Account Rules: You can keep any amount of balance in your savings account, but some rules have been made regarding cash. According to the rules, if you deposit more cash than the limit, the bank has to inform the Income Tax Department. Understand about it here.
Income Tax Department Notice: In today’s time, a savings account in the bank is necessary for everyone. It is necessary to have a bank account to take advantage of all the government schemes, while digital transactions cannot be done without it. There is no restriction on opening a bank account in India, due to which every person has two or more bank accounts. Your money is also safe in the savings account and from time to time the bank also gives interest on this deposited amount. According to the rules, it is necessary to keep a minimum balance in all accounts except zero balance account, otherwise the bank charges you a penalty. But there is no talk about how much maximum money can be kept in the savings account. Let us tell you about this-
Know how much money can you keep in the account?
According to the rules, you can keep any amount of money in your savings account. There is no limit for this. But if the amount deposited in your account is more and it comes under the purview of income tax, then you will have to tell the source of that income. Apart from this, there is a limit for depositing cash and withdrawing cash by going to the bank branch. But through cheque or online medium, you can deposit any amount from Rs 1 to thousands, lakhs, crores in the savings account.
These are the rules for depositing cash
The rule says that if you deposit Rs 50,000 or more in cash in the bank, then you will have to provide your PAN number along with it. You can deposit up to Rs 1 lakh in cash in a day. Also, if you do not deposit cash in your account regularly, then this limit can be up to Rs 2.50 lakh. Apart from this, a person can deposit a maximum of Rs 10 lakh in cash in his account in a financial year. This limit is overall for taxpayers with one or more accounts.
IT department keeps an eye on deposits of more than Rs 10 lakh
If a person deposits more than Rs 10 lakh in cash in a financial year, then the bank has to inform the Income Tax Department about it. In such a situation, the person has to tell the source of this income. If the person is unable to give satisfactory information about the source in the Income Tax Return, then he can come under the radar of the Income Tax Department and an investigation can be conducted against him. If caught, a heavy fine can be imposed. If the person does not tell about the source of income, then 60 percent tax, 25 percent surcharge, and 4 percent cess can be levied on the deposited amount.
However, this does not mean that you cannot make a cash transaction of more than Rs 10 lakh. If you have proof of this income, then you can deposit cash without any worry. However, from the point of view of benefit, instead of keeping so much money in your savings account, it is better to convert that amount into FD or invest it in some other place, from where you can get better returns.
