How to Prevent Income Tax Notices on Your Bank Account: Smart Savings Account Tips

Since bank savings accounts are monitored by AI, you might get a notice from the tax department if you don't have proper documents for the source of your money. It's important to know the rules about these limits.

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Income Tax Notice

Heard of someone getting a tax notice? It could happen to you too, mainly due to large bank transactions. The tax department now uses AI to monitor accounts. Not responding correctly can cause big trouble.

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Bank Account Transaction Rules

Tax expert CA Kamalesh Kumar says not to transfer large sums at once. If ₹10 lakh or more is deposited in a year, the bank reports it directly to the tax department, risking a notice.

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Savings Account Rules

For large transfers (over ₹10 lakh), have a clear source. Frequent large transactions raise suspicion. Always keep documents showing where the money came from, like from a relative.

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Bank Account

PAN and KYC are a must for large transfers. Banks monitor activity and will question unusual deposits. Following the rules helps you avoid the risk of a tax notice from the department.