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.
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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?
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.
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.
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.
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.
