Almost everyone has a savings account. But do you know how much credit you can keep in your account that is not taxed? Account holders should know that banks add annual interest to the savings account. However, all banks have different interest rates.
Also, few account holders don’t know how much money to keep or withdraw from a savings account in a fiscal year so it doesn’t come under tax? Every year, banks must inform the tax department of customers who withdraw 10 lakh or more from the bank.
See Zee Business Live TV Streaming below:
According to the tax law, banks must provide information on these accounts in the current financial year. This limit is seen in total for cash deposits of Rs 10 lakh or more in one financial year on one or more accounts (excluding checking accounts and time deposits).
The cash deposit limit on the checking account is Rs 50,000 or more. Kapil Rana, founder and chairman of HostBooks Limited, says that a person should be aware of Rule 114E of Income Tax in relation to income and expenses from the account.
Points to note:
1. All private and state banks that allow customers to open accounts are covered by the Banking Regulations Act of 1949. These banks must provide information about the account transactions, especially if Rs 10 lakh or more cash is deposited in these accounts (with the exception of accounts with current and time deposits) in the financial year.
2. The Banking Regulation Act of 1949 also applies to banks that offer credit card services to customers.
Individuals with more than one credit card are required to make a cash payment of Rs 1 lakh or more against the bill in a fiscal year. Also, in any mode, they have to pay Rs 10 lakh or more against the bill.