Utility News Desk!!! Most people have a savings account in some bank or the other. Savings account is a savings account and is used by many people to deposit cash and sometimes withdraw large amounts of money at once. But do you know that there are some rules related to this and if you do not follow them then you may have to pay a fine. Today we will tell you about those rules.
According to income tax rules, there is a limit for depositing cash in the savings account. You can deposit cash up to a maximum of Rs 1 lakh in a day. According to the Forbes report, if you deposit Rs 10 lakh or more in a financial year, you will have to inform the IT department. But if you have a current account then this limit is Rs 50 lakh. According to the report, it is a rule for financial institutions to report transactions exceeding this limit to the Income Tax Department.
The Income Tax Department has created this limit savings account to monitor current accounts and cash transactions of financial institutions to prevent money laundering, tax evasion and other illegal financial activities.
If you withdraw more than Rs 1 crore from your savings account in a financial year, TDS will be deducted at the rate of 2%. For those who have not filed ITR for the last three years, 2% TDS will also be levied on withdrawals of more than Rs 20 lakh and 5% TDS will be levied on withdrawals of Rs 1 crore in a financial year.
Under Section 269ST of the Income Tax Act, if a person deposits cash of Rs 2 lakh or more in a particular financial year i.e. a financial year, a penalty will be imposed. However, this penalty is not imposed on withdrawing money from the bank. Let us tell you that TDS deduction is applicable on withdrawals exceeding a certain limit.
