Savings Account Transaction Limit :Savings account is needed by everyone. But do you know that there is no Savings Account Limit to keep money in it?

Yes, you can keep as much money as you want in your account. However, if you did excessive transaction in Savings Accounts or a large amount of money appeared in your account, then the Income Tax Department can see you.

How many transactions come on the eye of Income Tax?

Usually, if the transaction of more than 10 lakh rupees is seen in your Savings Account, then the Income Tax Department can ask you the source of that amount.

At the same time, according to Section 269ST of Income Tax Act, Cash Transaction Limit in India is also against the rules. If you do this, then both bank and income tax can ask you for answers.

Bank also sends information to Income Tax

If you make a cash deposit limit of Rs 50,000 or more in your bank account, then the bank can ask you for PAN Card Number. If there is no PAN, then you have to give Form 60 or 61 (Form 60/61).

Apart from this, if you have transacted more than Rs 10 lakh in a financial year (Financial Year), the bank directly delivers this information to the Income Tax Department Notice.

What to do when the notice of Income Tax comes?

If you have ever deposited a huge amount and have not told the tax department about it, then you can get notice (Income Tax Notice on Savings Account). It is legally necessary to respond to this notice.

While responding to the notice, you may also have to provide details like bank statement, investment details, and property paper. If you are having any difficulty in answering, then it will be prudent to take help of a good CA or Financial Advisor (Financial Advisor).

Easy ways to escape

Keep a record of every transaction record in your savings account. Track your income and expenses.

If you are depositing a large amount, then keep the document proof. In this way you can easily deal with any possible notice (Income Tax Notice on Big Transaction).