Most people have a savings account in some bank. The savings account is a savings account and many people use it to deposit cash and sometimes to withdraw a large amount of money. But do you know that there are some rules related to it 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 the income tax rules, there is a limit to deposit cash in the savings account. You can deposit cash up to Rs 1 lakh in a day. According to the Forbes report, if you deposit Rs 10 lakh or more in a financial year, then you will have to inform the IT department. But if you have an current account, then this limit is 50 lakh rupees. According to the report, it is a rule for financial institutions to inform the Income Tax Department about more transactions than this limit.
The Income Tax Department has created this limit savings account to monitor cash laundering, tax evasion and other illegal financial activities of current accounts and financial institutions.
If you withdraw more than Rs 1 crore from your savings account in a financial year, then TDS will be deducted at the rate of 2%. Those who have not filed ITR for the last three years, with a withdrawal of more than 20 lakh rupees will also be imposed 2% TDS and 5% TDS will be imposed on withdrawing 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, then a fine will be imposed. However, this penalty is not imposed on withdrawing money from the bank. Let us tell you that TDS deduction is applied to more withdrawal than a certain range.
