Income Tax: Opening a bank account is necessary in today’s time. The Income Tax Department keeps a close watch on the accounts opened in banks, which include current and savings accounts. Deposits or withdrawals are monitored. If you deposit or withdraw a large amount in your savings account, the Income Tax Department gets information about it-
Saving Account Limit: Opening a bank account is necessary in today’s time. It makes digital transactions easier and the bank passbook is an important document. Salaried people, farmers and common people open savings accounts, which are for their savings.
At the same time, when a businessman opens a bank account, it is called a current account. The Reserve Bank of India and the Income Tax Department have set a limit for depositing money in a savings account and keeping money in the account. If the amount is more than the prescribed limit, the Income Tax Department questions the concerned person.
Digital transactions increased with mobile apps-
When the era of online transactions started in the country, people started using less cash. They started transacting from their savings account for digital transactions. Nowadays almost every bank has launched its mobile app. People are doing transactions using Paytm, PhonePe, Google Pay, UPI, Debit Card, Rupay Card etc. This has made their life easier.
How much balance can be kept in Saving Account-
There is no limit to keeping balance in a savings account, but the Income Tax Department has fixed the limit of balance in a savings bank account in a financial year. According to the rules of the Income Tax Department, no citizen of India can keep a balance of more than Rs 10 lakh in his savings bank account in a financial year.
In India, if a person’s bank account is found to have an amount more than the limit set by the Income Tax Department, then the Income Tax Department can inquire the concerned person through e-mail or special platform. After this, the account holder will have to provide detailed information to the Income Tax Department about the source of the remaining amount.
How much amount is income tax levied-
The Income Tax Department keeps a close watch on the accounts opened in banks, which include current and savings accounts. Deposits or withdrawals are monitored. If you deposit or withdraw a large amount in your savings account, the Income Tax Department gets information about it. Its purpose is to curb black money and prevent tax evasion.
If your account has a balance of Rs 10 lakh in a financial year, then the Income Tax Department will not ask you any questions. As soon as the balance in your savings account crosses the prescribed limit, the Income Tax Department starts collecting income tax from you. The Income Tax Department can also send a notice to the account holder for not paying the income tax.
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