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Income Tax Department notice: In today's time, a savings account in a bank is necessary for everyone. To avail the benefits of all government schemes, it is necessary to have a bank account, without it digital transactions cannot be done. There is no restriction on opening bank accounts in India, due to which every person has two or more bank accounts. Your money remains 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 maintain minimum balance in all accounts except zero balance account, otherwise the bank charges penalty from you. But there is no talk about the maximum amount that can be kept in a savings account. Let us tell you about this-
Know how much money you can 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 ambit of income tax, then you will have to declare the source of that income. Apart from this, there is also a limit on depositing and withdrawing cash by visiting the bank branch. But through check or online, you can deposit amounts ranging from Re 1 to thousands, lakhs, crores in your savings account.
These are the rules for depositing cash
The rule says that if you deposit Rs 50,000 or more cash in the bank, you will have to provide your PAN number along with it. You can deposit cash up to Rs 1 lakh in a day. Also, if you do not deposit cash in your account regularly then this limit can go 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 applicable for taxpayers having one or more accounts.
Income Tax Department keeping 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 this information to the Income Tax Department. In such a situation, the person has to declare the source of this income. If the person is not able to provide satisfactory information about the source in the income tax return, then he can come on the radar of the Income Tax Department and investigation can be done against him. If caught, a heavy fine can be imposed. If the person does not disclose the source of income, then 60 percent tax, 25 percent surcharge and 4 percent cess can be imposed on the deposited amount.
However, this does not mean that you cannot do cash transactions of more than Rs 10 lakh. If you have proof of this income, you can deposit cash without any worries. However, from the profit point of view, instead of keeping so much money in your savings account, it is better to convert that amount into FD or invest it somewhere else, from where you can get better returns.