Income Tax: If you deposit or withdraw cash more than this limit in your bank account, you will come under the radar of Income Tax..
Bank Account Rules: We all use bank accounts but there are many rules for using them which very few people know. We all deposit and withdraw money in a bank account.
Do you know that there is a limit for depositing and withdrawing cash in the bank?
The limit has been fixed by the Income Tax Department for withdrawing and depositing cash from the bank account. According to the bank rules, if the amount deposited in your account is more it comes under the purview of Income Tax. Under this, you will have to tell the source of that income.
You can deposit this much money in a bank account
According to the bank rules, if you deposit Rs 50,000 or more in cash in the bank, then you will also have to provide your PAN number along with it. You can deposit up to one lakh rupees in cash in a day.
If you do not deposit cash in your account regularly, then this limit can be up to Rs 2.50 lakh. In a financial year, a person can deposit up to Rs 10 lakh in cash in his account. For taxpayers, this limit applies to one or more accounts as a whole.
You can keep this much money in the account.
The bank rules (Bank New Rules) say that you can keep any amount of money in your savings account. No limit has been set for this. If the amount deposited in your account is more, then you will come under the purview of income tax. You will have to tell the source of that income.
Through check or online mediums, you can deposit any amount from Rs 1 to thousand, lakh, crore in the savings account.
If you break the limit, you will come under the radar of the Income Tax Department.
If a person deposits more than Rs 10 lakh in cash in a bank account in a financial year, then the bank has to inform the Income Tax Department about it. In such a case, the person has to tell the source of this income.
If a person is not able to give satisfactory information about the source of the deposit in the income tax return, he can come under the radar of the income tax department and an investigation can be conducted against him.
If caught, a heavy penalty can be imposed. Apart from this, 60% tax, 25% surcharge, and 4% cess can also be levied on that deposit amount.
