How a lot money can you retain in financial savings account with out attracting Revenue Tax discover? Know the Guidelines – India TV

Have you ever ever puzzled how a lot money you’ll be able to hold in your financial savings account with out triggering an Revenue Tax discover? This can be a widespread concern for a lot of people. In response to revenue tax guidelines, the full money deposit or withdrawal in a financial savings account throughout one monetary yr mustn’t exceed Rs 10 lakh. Exceeding this restrict can appeal to scrutiny from the Revenue Tax Division.

Day by day money transaction limits

One other query typically raised is the restrict on money transactions in a single day. Below Part 269ST of the Revenue Tax Act, a person can not obtain greater than Rs 2 lakh in money in a single transaction or linked transactions on a given day. If the full money deposits throughout all of your financial savings accounts exceed Rs 10 lakh in a monetary yr, banks are required to report this to the Revenue Tax Division, even when the deposits are unfold throughout a number of accounts.

Excessive-value transactions: What occurs if you happen to exceed the restrict?

When you deposit greater than Rs 10 lakh in money throughout a monetary yr, it is going to be thought of a high-value transaction. Below Part 114B of the Revenue Tax Act, banks and monetary establishments should inform the Revenue Tax Division about such deposits. Moreover, if you happen to deposit greater than Rs 50,000 in money in a single day, you should present your PAN quantity. When you don’t have a PAN, you will want to submit Type 60/61 in its place.

How to answer Revenue Tax notices associated to high-value transactions

When you obtain an Revenue Tax discover for high-value transactions, you should have ample proof to assist the supply of the funds. This proof can embrace financial institution statements, funding data, or paperwork associated to inheritance. When you’re not sure or involved concerning the supply of your money, it’s advisable to seek the advice of a tax advisor for steering.

Key takeaways:

• Money deposits or withdrawals in a financial savings account mustn’t exceed Rs 10 lakh in a monetary yr to keep away from Revenue Tax scrutiny.
• Day by day money transactions of Rs 2 lakh or extra should not allowed beneath Part 269ST.
• Excessive-value transactions exceeding Rs 10 lakh in a yr should be reported to the Revenue Tax Division.
• When you make a money deposit of Rs 50,000 or extra in a day, PAN is required.
• Responding to Revenue Tax notices requires offering enough documentation to elucidate the supply of funds.

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