Savings Account: Usually many people have this question in their mind that how many savings accounts can they keep together and how can they be safe from income tax. In such a situation, if you also want to know the answers related to these questions, then let us know in this news below-
Saving Account Usually many people have this question in their mind that how many savings accounts can they keep together and how can they be safe from income tax. In such a situation, let us tell you that there is no limit for opening multiple savings accounts for a person, but it is necessary to keep track of the total balance and deposit amount of all the accounts. In such a situation, it is very important for the customers to know how much of the balance in their account is taxable and how much is not-
Actually, annual interest is given by the bank on the savings account, but all banks have different interest rates. At the same time, some customers do not know how much money can you deposit or withdraw in a savings account in a financial year, so that you do not come under the purview of tax? There are many such confusions in the minds of taxpayers regarding savings bank account, which is necessary to remove in time.
How much money can be kept in Saving Account?
Let us tell you that in a normal savings account, you can deposit and withdraw unlimited money. There is no limit on deposit or withdrawal, but there may be some limits on cash transactions in the branch. You can deposit from Rs 1 to lakhs, crores, or billions of rupees through check or online. Thus, you can maintain any amount of balance in your account. This account provides flexibility and easily meets your financial needs.
Will have to answer to the tax department-
Bank companies have to answer to the tax department every year if customers withdraw an amount of Rs 10 lakh or more from the bank.
Under the tax law, the bank has to give information about those accounts during the current financial year.
This limit is seen overall for cash deposits of Rs 10 lakh or more in a financial year in one or more accounts of the taxpayer (other than current accounts and time deposits).
You can deposit only this much cash-
The limit of cash deposit in current account is 50 thousand rupees or more. According to Kapil Rana, founder of Hostbook Limited, people should be aware of Income Tax rule 114E for income and expenditure of their account. This rule ensures that a person withdraws or deposits such an amount from his savings account in a financial year that it does not come under the income tax radar. By having the right information, a person can manage his financial situation in a better way.
Tax has to be paid on interest-
The bank account holder has to pay tax on the interest earned on the amount kept in the bank’s savings account. The bank deducts 10 percent TDS on interest. According to Section 80TTA of the Income Tax Act, all persons can get tax exemption up to 10 thousand. If the interest is less than Rs 10,000, then no tax will have to be paid.
Account holders above 60 years of age get tax exemption on interest up to Rs 50,000. If your annual income, despite including interest, does not fall in the tax slab, then you can get a refund of TDS deducted by the bank by submitting Form 15G.
