Nowadays almost every person uses savings account. However, no limit has been set regarding the maximum amount deposited in the savings account. But very few people know that the interest you get on savings account comes under the purview of Income Tax. Let us know about it in detail.
At present, everyone has at least one savings account in the bank. You can take advantage of internet banking by linking your savings account to UPI. You can keep your savings in your savings account. In this, you also get interest from the bank on the money deposited, which also increases your income. But do you know the maximum amount you can deposit in a savings account?
Let us tell you that there is no maximum limit for depositing money in savings account. But if you deposit more than a limit then you may have to pay tax on it. Let us know what are the rules of income tax.
How much money can be deposited in the savings account?
You can keep as much money as you want in the savings account. But you should take special care that you keep only that amount in it which comes under the purview of ITR. If you keep more cash, you have to pay tax on the interest you get.
Provide information while filing ITR
While filing ITR, you have to tell the Income Tax Department how much money is deposited in your savings account and how much interest you get on it. The interest you get from the deposits in your savings account is added to your income. If your annual income is Rs 10 lakh and you get Rs 10,000 interest on it from the bank, then according to income tax rules your total income will be considered Rs 10,10,000.
What will happen if you keep more money?
According to the rules, there is no limit on keeping money in the savings account. But if you deposit Rs 10 lakh or more in your account in a financial year, then it is important for you to inform the Income Tax Department about this. Because it comes under the purview of income tax. If you do not do this then the Income Tax Department can take action against you for tax evasion.
