Savings accounts – We all use savings accounts to keep our money safe, but did you know there are some rules you need to follow? Most people aren’t aware of these rules, and if you break them, you could get a notice from the Income Tax Department.
You might think your savings account is just for your money, but there are limits. If you deposit too much, the tax department might take notice. Many people don’t know this. Financial experts say that the total amount deposited in a savings account in a financial year shouldn’t exceed 10 lakhs. If it does, you need to tell the Income Tax Department. Also, according to Section 269ST of the Income Tax Act, you can only do transactions up to 2 lakhs in a single day.
If you deposit 50,000 rupees or more in a single day, you need to inform the bank. You also need to provide your PAN details. If you don’t have a PAN, you need to submit Form 60 or 61. Transactions exceeding 10 lakhs are considered high-value transactions.
Sometimes, we might make large transactions without realizing we need to tell the Income Tax Department. If this happens, you’ll get a notice from them. So, what should you do if you receive such a notice? You need to respond to it and provide the necessary documents, like your bank statements, investment records, or asset details.
