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RBI's new rule: Depositing over Rs 10 Lakh in savings accounts? Here's what you could face
Depositing more than Rs 10 lakh in cash into a savings account now requires PAN card details and proof of income source. Failure to provide proof may result in a 60% tax deduction. Learn about the new income tax rules.
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Several rules have changed in the new year. From changing bank opening and closing times to changing EPRO rules.
Similarly, the bank has decided to close three types of accounts. Along with this, the income tax has changed.
Now, the Income Tax Department has issued a new guideline. Where it is being said, depositing more than Rs 10 lakh in a savings account will put you in danger.
60 percent tax may be deducted from you. Special rules have come to light. If you don't follow it, you will have to pay a hefty tax.
First, you have to provide PAN card information at the time of deposit. Along with that, you have to fulfill several other conditions, otherwise the bank will deduct 60 percent tax.
Depositing more than Rs 10 lakh in a savings account will cause problems. The published guidelines state that if a person deposits more than 1 million in cash in his savings account, it is mandatory to disclose its source.
60 percent tax will be deducted if the source is not disclosed. The government has taken this decision to control black money.
As per the rules, if you have to deposit more than 10 lakh rupees in cash in your savings account in a financial year, keep your PAN card and proof of income source with you.
According to RBI rules, PAN card has to be given if more than Rs 10 lakh are deposited in a financial year. Earlier this limit was Rs 50,000. Which was later increased to Rs 2.5 lakhs. Currently, it is 10 lakhs.
Similarly, another easy way to avoid this rule is to submit income tax return. There is no problem if your source of income is legal.
Similarly, keep records of all income and transactions so that you can provide information in case of any investigation.
Link Aadhaar and PAN card with bank account. If you deposit more than 10 lakh rupees, submit your income tax return. If you have trouble understanding these rules, be sure to talk to your bank advisor.
