The Income Tax Department keeps changing the rules to bank accounts from time to time, so that financial transactions can be monitored. Recently, the department has issued clear guidelines regarding Savings Account Limit in the savings account.

If you deposit more cash in your account than this prescribed limit, you may have to face trouble. Not only this, IT notice can also be sent to you by the Income Tax Department. Let us know in this news that what are the Income Tax Rules to the savings account and how to follow them.

According to the department, if you deposit more than Rs 10 lakh in your savings account in a financial year, then it is considered to be high-value transaction. In such a situation, the bank or any financial institution informs the Income Tax Department, which is mandatory under Section 114B (Section 114B) of the Income Tax Act, 1962.

Also, if you deposit more than Rs 50,000 cash in a single day, then you have to show your PAN card. If you do not have a PAN card, it becomes necessary to submit Form 60 or 61. These rules are made to ensure your financial transparency.

Many times people get nervous when they get income tax notice after high value transaction. In such a situation, you do not need to panic, but you have to submit the right documents to prove your source of income. Documents such as bank statements, investment records, or inheritance documents can prove to be helpful in this situation.

If you feel that the source of cash is finding it difficult to explain correctly, it would be prudent to contact an experienced tax consultant (Tax Consultant). With this, you will be able to answer the notice easily.

Apart from this, strict rules are also applicable under Section 269ST of Income Tax of Income Tax. According to this rule, no person can accept more than Rs 2 lakh cash in a day, one transaction, or in a transaction attached to a particular occasion. This rule is designed to limit the transaction rule in India and promote digital economy.

Not following these rules may lead to heavy fines or legal action. Therefore, it is very important to understand and follow your savings account ke rule.