Cash Deposit Limit in Bank Account: You are able to save this much money in your savings account. See the limit and further information

 Cash Deposit Limit in Bank Account: You are able to save this much money in your savings account. See the limit and further information

Rules for savings accounts: The money in your savings account is monitored by the Income Tax Department as well. Banks are required to provide the Income Tax Department with information on cash deposits exceeding Rs 10 lakh.

Delhi, New. Nowadays, a bank account is owned by every citizen of the nation. Different kinds of bank accounts exist. The savings account is one of them. The most often opened account is this one. Most people use savings accounts to hold their money. You are able to open an unlimited number of savings accounts. Furthermore, there is no cap on the amount of money that may be deposited into the savings account (savings account limit). In other words, you may fund your savings account with any quantity of money. The Income Tax Act and banking rules do not specify a limit on the amount of money that may be deposited into a savings account.

Indeed, the bank will undoubtedly notify the Income Tax Department if you make cash deposits into your savings account totaling more than Rs 10 lakh within a given fiscal year. In accordance with Income Tax Act of 1961 Section 285BA, banks are required to provide this information. If the amount of money in your savings account differs from what you reported on your income tax return, you may get a notification from the Income Tax Department.

Interest requires payment of taxes.

The income taxpayer is required to provide details on the funds placed into his savings account in his ITR file. Interest earned on deposits made into savings accounts is added to your income and subject to income tax. 10% TDS is deducted by the bank from interest. Interest generated on savings account balances is also eligible for tax deductions. The Income Tax Act's Section 80TTA states that everyone is eligible for a tax exemption of up to Rs 10,000.

Tax payment is not required if the interest received on the funds held in the savings account is less than Rs 10,000. Account holders who are older than 60 are exempt from paying taxes on interest payments up to Rs 50,000. If a person's yearly income—even after factoring in savings account interest—is insufficient to trigger a tax obligation, he may request a refund of the TDS that the bank withheld by completing Form 15G.