To save our savings, we take the help of savings account. There are many rules regarding savings account. Many people are not aware of these rules. If you transact more than a limit from the savings account, then you may get a notice from the Income Tax Department. We will tell you about these rules in this article.
We keep our deposits in savings accounts. But, there is a limit in this too. If there is more money in our account than this limit, then we can come under the radar of the Income Tax Department. Many people are still unaware of this. In this article, we will tell you what are the rules of the Income Tax Department regarding savings accounts.
Information will have to be given on transactions above this limit
According to financial experts, the total deposit amount in a savings account in a financial year should not exceed Rs 10 lakh. If it exceeds this limit, then information about it will have to be given to the Income Tax Department. At the same time, according to Section 269ST of the Income Tax Act, the account holder can transact Rs 2 lakh in a day. If he transacts more than that, he will have to tell the reason to the bank.
Banks also provide this information
According to the rules, if a person deposits Rs 50,000 or more in a day, then he has to give information about it to the bank. Apart from this, the account holder also has to give details of his PAN. If the account holder does not have a PAN, he has to submit Form 60 or 61. At the same time, transactions of more than Rs 10 lakh are considered high-value transactions. The bank gives information about such transactions to the Income Tax Department.
What to do if you get a notice?
Many times, for some reason, we make such a big transaction and do not inform the Income Tax Department about it. In such a situation, we get a notice from the department. Now the question arises that what should we do in this situation? If you get any such notice, then you should respond to it. Along with the reply to the notice, you should also give information about the documents related to it. These documents include statements, investment records, or assets etc. According to experts, if you have any problem in responding to the notice or regarding the documents, then you can consult a financial advisor.
