Income tax : If you have so much money in your savings account, don’t miss paying tax, otherwise you will get caught in the trap of Income Tax Department.
Yes, it is required that if you deposit more than 10 lakh rupees in your savings account in a financial year, the bank will inform the Income Tax Department. As per Section 285BA of the Income Tax Act 1961, it has been made mandatory for banks to provide that information.
Today everyone in the country has a bank account. There are many types of bank accounts. One of them is a savings account. This is the account that is opened the most. People generally keep their savings in savings accounts. You can open as many savings accounts as you want. Not only this, there is no limit for depositing money in the savings account. That is, you can deposit as much money as you want in the savings account. There is no limit set by income tax or banking regulations on depositing money in a savings account.
Yes, it is required that if you deposit more than 10 lakh rupees in your savings account in a financial year, the bank will inform the Income Tax Department. As per Section 285BA of the Income Tax Act 1961, it has been made mandatory for banks to provide that information. If you don’t include the money kept in the savings account in the ITI information, the Income Tax Department can issue a notice to you.
Interest has to be taxed
At the time of filing ITR, taxpayers should inform about the amount deposited in their savings account. The interest earned on deposits in your savings account is added to your income and income tax is charged on the interest. Bank deducts 10 percent TDS on interest. Interest earned from savings account is also given tax deduction benefit. As per Section 80TTA of the Income Tax Act, all individuals can get tax exemption up to Rs 10,000.
If the interest from the rupees kept in the savings account is less than 10,000 rupees, no tax has to be paid. Account holder above 60 years of age will not have to pay any tax on interest up to Rs 50 thousand. But if a person’s annual income after earning interest from savings account is not so much that he has tax liability on it, he can get refund of TDS deducted by the bank by submitting Form 15G.
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