Income Tax Rules news: Do you know that there are some rules related to depositing and withdrawing cash in a savings account, if you do not follow them, you may be charged a penalty. It is also possible that you may be questioned about this. It is important that you have the necessary information about this so that no mistake is made knowingly or unknowingly…
Saving Bank Account news update: You must have a savings account in some bank. All of us women use savings account. Some or the other of your savings account will also be connected to UPI transaction. Sometimes you must be using this account to deposit cash and sometimes to withdraw a large amount at once. But do you know that there are some rules related to this which come under the rules and regulations of the Income Tax Department. That is why it is necessary to follow them so that you do not have to face any trouble.
Why and what is the rule of deposit in current and savings….
According to the Income Tax rules, there is a limit on cash deposit in savings account. That is, how much cash can you deposit in the bank account during a fixed period. Actually this limit has been made to keep an eye on cash transactions. So that, money laundering, tax evasion and other illegal financial activities can be prevented. According to the report given in Forbes, if you deposit Rs 10 lakh or more in a financial year, then the IT department will have to be informed. However, if you have a current account, then this limit is Rs 50 lakh. According to the report, there is no immediate taxation on this cash, but it is a rule for financial institutions to report transactions above these limits to the Income Tax Department.
What is section 194A.. is it useful for you
If you withdraw more than Rs 1 crore from your savings account in a financial year, then 2% TDS will be deducted on it. Those who have not filed ITR for the last three years, 2% TDS will be deducted on them, that too only on withdrawal of more than Rs 20 lakh. If such people withdraw Rs 1 crore in this particular financial year, then 5% TDS will be levied.
It is worth noting that TDS deducted under section 194N is not categorized as income, but you can use it as credit while filing income tax return (ITR).
What is Section 269ST which can impose penalty
Under Section 269ST of the Income Tax Act, if a person deposits Rs 2 lakh or more in cash in a particular financial year, a penalty will be imposed on it. However, this penalty is not applicable on withdrawing money from the bank. However, TDS deduction is applicable on withdrawals above a specific limit.
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