Cash deposit and withdrawal limit in savings account as per income tax, know the rules of IT department

Saving Bank Account news update: You must have a savings account in some bank. All of us women use savings accounts. Some of your savings accounts will also be linked to UPI transactions. Sometimes you may use 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. Therefore, it is important to follow them so that you do not have to face any problem.

Why and what is the rule of deposit in current and savings….

According to income tax rules, there is a limit on cash deposit in a savings account. That is, how much cash can you deposit in your bank account in a fixed period. Actually this limit has been created to keep an eye on cash transactions. So that, money laundering, tax evasion and other illegal financial activities can be stopped. According to the report given in Forbes, if you deposit Rs 10 lakh or more in a financial year, then you will have to inform the IT department. However, if you have a current account then this limit is Rs 50 lakh. According to the report, this cash is not immediately taxed, but it is a rule for financial institutions to report transactions exceeding 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, 2% TDS will be deducted on it. Those who have not filed ITR in the last three years, 2% TDS will be deducted, that too only on withdrawals above 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 classified as income, but you can use it as credit while filing income tax returns (ITR).

What is Section 269ST under which penalty can be imposed?

Under Section 269ST of the Income Tax Act, if a person deposits Rs 2 lakh or more in cash in a particular financial year, he will be fined. However, this penalty is not applicable on withdrawing money from the bank. However, TDS deduction is applicable on withdrawals above a certain limit.