RBI New Rule: At present everyone opens their account in the bank. Your money deposited in the bank remains safe, but if you deposit more than the prescribed amount in a financial year, then the Income Tax Department issues a notice to you. If you want to avoid tax notice, then it is important for you to give complete details of your income to the IT department.
New Delhi: In today’s time, it is necessary for every person, rich or poor, to have a bank account, because money from salary, wages and other government schemes comes directly into the accounts.
There are many options available for opening accounts in banks like savings, current and salary accounts. However, most people in the country have a savings account. People do most of the transactions in the country through savings accounts only.
But do you know how much money should be kept in a savings account? However, there is no limit to the amount of money you can keep in your savings account. But, if the money deposited in the savings account comes under the ambit of income tax.
So you will have to give this information. According to the Central Board of Direct Taxes, it is mandatory to give information about the amount of more than Rs 10 lakh in any bank account in a financial year.
This limit also applies to investments in FDs, mutual funds, bonds and shares. (Indicative picture) At the same time, tax also has to be paid on the interest received on savings account, but there are some rules related to it.
Under the Income Tax Act section 80TTA, no tax is levied on common people on interest up to Rs 10,000 earned on savings account in a financial year.
If the interest amount exceeds this, tax has to be paid. However, for senior citizens this limit is up to Rs 50 thousand. Not only this, the interest earned from the savings account is added to your income from other sources.
And then you have to pay tax on the total income as per the respective tax bracket. Let us tell you that the country’s leading government and private banks are offering interest ranging from 2.70 percent to 4 percent on savings accounts.
The interest rate on savings account with balance up to Rs 10 crore is 2.70 per cent and on balance above Rs 10 crore the rate is 3 per cent. Apart from this, many small finance banks are offering up to 7 percent interest on savings accounts with conditions.
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