Savings Account Holders Attention! Transaction Beyond THIS Limit May Attract Income Tax Notice- Check Rules, Deposit, Withdrawal Limit
Savings Account Transaction Limit in India: Have you ever thought about how much money you can keep in your savings account without getting a notice from the Income Tax Department? As per the rules, you shouldn't deposit or withdraw more than Rs 10 lakh in cash in a savings account in one financial year. If you go over this limit, the Income Tax Department might look into.
Cash Limit In A Single Transaction
![Cash Limit In A Single Transaction](https://english.cdn.zeenews.com/sites/default/files/2024/12/15/1607268-rs-4.jpg?im=Resize=(400))
Under Section 269ST of the Income Tax Act, individuals cannot receive over Rs 2 lakh in cash in a single transaction or related transactions on a single day in your savings account.
Annual Deposit Limit
![Income Tax Rules](https://english.cdn.zeenews.com/sites/default/files/2024/12/15/1607267-rs1.jpg)
If your total cash deposits across all savings accounts exceed Rs 10 lakh in a financial year, banks must report this to the Income Tax Department.
High-Value Transactions
![Income Tax Rules](https://english.cdn.zeenews.com/sites/default/files/2024/12/15/1607266-rs2.jpg)
Deposits above Rs 10 lakh in a financial year are flagged as high-value transactions. Under Section 114B, banks must notify the Income Tax Department about these deposits.
PAN Requirement for Large Deposits
![Income Tax Rules](https://english.cdn.zeenews.com/sites/default/files/2024/12/15/1607264-pan-3.jpg)
Cash deposits exceeding Rs 50,000 in a single day require a PAN card. If unavailable, you must provide Form 60/61 as a substitute.
Responding to Income Tax Notices
![Income Tax Rules](https://english.cdn.zeenews.com/sites/default/files/2024/12/15/1607262-rs3.jpg)
If you receive an Income Tax notice for high-value transactions, provide adequate evidence, such as bank statements, investment records, or inheritance documents, to verify the source of funds.
Avoiding Income Tax Scrutiny
![Income Tax Rules](https://english.cdn.zeenews.com/sites/default/files/2024/12/15/1607261-income-1.jpg)
Maintain detailed records, including receipts or proofs, for large cash deposits from legitimate sources like business sales or gifts.
File Accurate Income Tax Returns
![Income Tax Rules](https://english.cdn.zeenews.com/sites/default/files/2024/12/15/1607260-tax.jpg)
Ensure your Income Tax Returns (ITR) reflect all financial activities accurately. Avoid splitting deposits across multiple accounts, as this could still trigger scrutiny. (Image Credit: Freepik, File Photo)
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