look news india
This is a common question that most people raise. People want to know how many savings accounts they can operate simultaneously so that they do not have any problems with income tax. The second question is what is the maximum balance that can be maintained in a savings account so that income tax notice is not received? It is very important for such customers to know how much of their account balance is taxable and how much is not.
Interest is earned on depositing money in savings account-
Actually, interest is given annually by the bank on savings account, but the interest rates of all banks are different. At the same time, some customers do not know how much money can be deposited or withdrawn from the savings account in a financial year, so that they do not come under the tax net. There are many misconceptions in the minds of taxpayers regarding savings bank accounts, which need to be removed in time.
How much money can be kept in a savings account?
You can deposit any amount and withdraw any amount in a normal savings account (Savings Account Cash Limit). There is no limit on depositing or withdrawing money. However, there are limitations for depositing cash and withdrawing cash by visiting a bank branch. But, through check or online, you can deposit Rs 1 to thousand, lakh, crore, billion or any number of rupees in your savings account and maintain it as balance.
Tax department will have to answer
If customers withdraw an amount of Rs 10 lakh or more from the bank, then the bank companies will have to file a reply to the tax department every year. Under the tax law, the bank has to give information about those accounts during the current financial year. This limit is observed in aggregate for cash deposits of Rs 10 lakh or more in a financial year in one or more accounts (other than current accounts and fixed deposits) of the taxpayer.
You can only deposit so much cash
The limit for depositing cash in current account is Rs 50 thousand or more. Talking about transactions, Kapil Rana, Founder and Chairman, Hostbook Limited, says that one should be aware of Income Tax Rule 114E regarding the income and expenditure from the accounts. Along with this, he can withdraw or deposit only that much money from his savings account in a financial year so that it does not come under the ambit of income tax.
Tax has to be paid on interest
The bank account holder has to pay tax on the interest received on the amount kept in the savings account of the bank. The bank deducts 10 percent TDS on interest. Balwant Jain says that tax has to be paid on interest but tax deduction can be availed on this also. According to Section 80TTA of the Income Tax Act, all individuals can get tax exemption up to Rs 10,000. If the interest earned is less than Rs 10 thousand then tax will not have to be paid.
Similarly, account holders above 60 years of age will not have to pay tax on interest up to Rs 50,000. If even after adding that interest to your total annual income, your annual income is not enough to become a tax liability, you can get a refund of the TDS deducted by the bank by submitting Form 15G.