Savings Account Rules: How Much Money Can You Deposit or Withdraw?:

Savings Account: A savings account is a very common account which is opened in a bank to keep the savings of a person safe. The balance in this account can be added and removed easily. Now, do you know the amount of money that can be deposited or withdraw from this account? It solely depends upon the policies set by the bank. Today we will focus on important policies and information related to savings account so that informed decisions may be made.

These are the important things one must know about regarding savings account-

Income Tax stipulates that a person may, in one financial year, deposit and withdraw the amount of Rs 10 lakh into their savings account. According to Section 269ST, a person can make only single transaction of a maximum of Rs 2 lakh a day from his saving account. These limitations have been established to guarantee proper financial control regarding transaction control.

Under the described conditions, an income tax notice will be issued-

If a person deposits more than Rs 10 lac in his savings account from 1 April to 3 March during the financial year, it shall be treated as a high-value transaction. In such a case, the bank or financial institution is required to report it to the Income Tax Department under Section 114B of The Income Tax Act, 1962. If a transaction of more than Rs 50,000 is done in any given day, then a PAN number must be provided otherwise filling Form 60/61 becomes mandatory.

If in a year you deposit over 10,000, it will result in an income tax notice, which you will have to respond to. To respond to the notice, it is crucial that you have the evidence that sufficiently proves your claim regarding the source of the funds. These may include bank statements, documents pertaining to investments, and records of inheritances. A tax advisor would be useful in such cases.