Tuesday , June 18 2024

Income Tax: Depositing more than this limit in the savings account may cause problems; Do this work immediately

Savings Account: Nowadays everyone has at least one savings account. This gives you a lot of convenience in managing your finances. It is very easy to deposit and withdraw money in this. This is the reason why most of the people handle their daily banking related work through this. After the introduction of online payment and UPI facility in the country, its use has increased even more. But do you know that Income Tax has set some limits for savings accounts also.

Let us tell you that if you have a savings account in any bank, you can deposit and withdraw money from it anytime. Apart from this, the bank provides you many facilities and it also has some limitations. Let us know how much money you can deposit in your savings account.

How much money can be deposited in a savings account?

Different types of facilities are provided on savings account by different banks. Most of the people do most of their banking related work through savings account only. However, in most banks, no limit has been set regarding the maximum amount deposited in the savings account. But if you deposit more than Rs 10 lakh in your savings account, then it is necessary to inform it to the Income Tax Department. The same rule also applies to investments made in fixed deposits, mutual funds, bonds and shares.

Savings account interest is taxable

You also have to pay tax on the interest earned on the amount deposited in your savings account in a financial year. Under the Income Tax Act, any individual account holder has to pay tax if he earns more than Rs 10,000 interest on savings account in a financial year. Senior citizens have been given a rebate of up to Rs 50,000. Apart from this, you will also have to pay tax on linking your savings account to any other income source.

How much interest is given on the amount deposited in savings account?

Major public and private sectors of the country offer interest ranging from 2.70 percent to 4 percent on deposits in savings accounts. The interest rate on the amount deposited in savings account up to Rs 10 crore is 2.70 percent and on the amount more than Rs 10 crore, this rate is 3 percent. However, some small finance banks also offer you up to 7 percent interest on savings account with conditions.