Do you also have a savings account? If yes, then this news is only for you. If you are depositing or withdrawing cash from your savings account, then you have to keep in mind the rules of the Income Tax Department. You cannot deposit more than a certain limit in your savings account.
According to financial experts, the total amount of cash deposited or withdrawn from a savings account in a financial year (April 1 to March 31) should not exceed ₹ 10 lakh. If this limit is exceeded, the bank will have to report this transaction to the Income Tax Department. Apart from this, under Section 269ST of the Income Tax Act, it is prohibited to receive cash of ₹ 2 lakh or more from any person in a day.
Informing the bank is mandatory
If cash deposits of ₹50,000 or more are made in a savings account in a single day, then PAN card details must be provided. If you do not have PAN, you will have to submit Form 60 or 61. According to Abhishek Soni, CEO and co-founder of Tax2Win, “Cash deposits of more than ₹10 lakh are classified as high-value transactions. The bank or financial institution has to report this transaction to the Income Tax Department under section “Payments made under section 114B”.
What to do with an income tax notice?
If you receive a notice from the income tax department for a high-value cash transaction, you should have sufficient documentation to support the source of the funds. This may include bank statements, investment records, or inheritance documents. Experts suggest that if you have any doubts about reporting a transaction, it is better to consult an experienced tax advisor.
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