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  • How much do you need in your savings account? Know the new rule by the Centre

How much do you need in your savings account? Know the new rule by the Centre

How much money can you keep in your savings account before incurring taxes? The government has introduced new rules regarding high-value transactions in savings accounts.

1 Min read
Author : Ajay Joseph
Published : Dec 26 2024, 01:56 PM IST
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Many people transact money through their everyday accounts. But do you know how much money you can keep before being taxed?

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Let's find out how much money you can keep before having to pay taxes. If you deposit more than 10 lakh rupees in all your savings accounts between April 1 and March 31 of a financial year, you will have to pay taxes.

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If you keep this amount in the bank, you have to inform the Income Tax Department. Banks must disclose such transactions even if the money is kept in multiple accounts.

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What happens if you keep more than 10 lakh rupees in your savings account in a financial year? Any amount above this limit will be considered a high-value transaction.

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According to the Income Tax Act, under Section 114B of 1962, this must be reported to the Income Tax Department. Also, if you deposit more than 50,000 rupees a day, you have to provide your PAN number. If you don't have a PAN, you must submit Form 60/61 as an alternative. So from now on, before keeping money above this limit, be sure to keep this tax in mind.

Stay updated with all the latest Business News, including market trends, Share Market News, stock updates, taxation, IPOs, banking, finance, real estate, savings, and investments. Track daily Gold Price changes, updates on DA Hike, and the latest developments on the 8th Pay Commission. Get in-depth analysis, expert opinions, and real-time updates to make informed financial decisions. Download the Asianet News Official App from the Android Play Store and iPhone App Store to stay ahead in business.

 

About the Author

AJ
Ajay Joseph
With over eight years of journalistic experience, Ajay Joseph Raj. P has been a dedicated member of the Asianet Newsable team, where he serves as the Chief Copy Editor. His expertise spans Business, Career, Stock Market, National, International, and viral/trending topics, with a knack for crafting compelling narratives that connect with diverse audiences.Before joining Asianet Newsable, Ajay honed his skills at OneIndia News and Opoyi English, gaining extensive experience in delivering impactful stories across various beats.
India
Income Tax

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