Income Tax: How much money can be deposited in the account, know what the law says..

Income Tax: There are many rules regarding transactions in bank accounts. There are also rules related to income tax and bank accounts. There are also rules regarding depositing money in a bank account and transactions. The Income Tax Department keeps an eye on bank transactions, and you may have to face an investigation in case of any irregularity.

Limit fixed in a savings account.

According to the Income Tax Act 2025, a limit has been fixed for depositing money in a savings account (Income Tax). This is the limit on deposits in a certain time. Many people are not aware of this rule. This rule has been made to monitor cash transactions.

Why the rule has been made

This rule of the Income Tax Department is to prevent money laundering, tax evasion, and other illegal activities. This will provide relief from misuse of money and tax (Income Tax) evasion in the country. Let us know about these rules of Income Tax.

Rules regarding cash withdrawal

Section 194N of the Income Tax Act has the rule of Income Tax Deducted at Source (TDS) regarding cash withdrawal. Two percent will be deducted as TDS on withdrawing more than one crore rupees in cash.

For those who have not filed an Income Tax Return (ITR) for the last three years, 2% TDS will be applicable on withdrawal of more than 20 lakh rupees and 5% TDS will be applicable on withdrawal of more than one crore rupees. This can be used as credit while filing an ITR.

There is a penalty on cash transactions.

According to Section 269ST of Income Tax, if a person accepts two lakh rupees or more in cash in a year or in one transaction, then a penalty is imposed on him. Whereas this penalty does not apply to cash withdrawal from the bank. TDS can be deducted on setting the withdrawal limit.

You may have to pay a penalty on a cash loan.

Sections 269SS and 269T in Income Tax are related to cash loans. According to this, if someone takes or repays a cash loan of more than Rs 20,000, he may have to pay a penalty of the same amount. To understand these, you need to know the rules of Income Tax.

Not disclosing the source will cost you.

If the source of income is not disclosed by a person, the Income Tax Department can issue a notice as per Section 68. 60 percent tax can be levied on unverified income. At the same time, a 25% surcharge and 4% cess will be levied. That is, a huge tax will be levied in total.

Depositing cash will cost you.

According to the savings account, only Rs 10 lakh can be deposited. Similarly, cash of more than Rs 50 lakh cannot be deposited in the current account. If more than this amount is deposited, the bank informs the Income Tax Department.

This amount is not directly taxed, while a penalty is imposed for not following the rules. A penalty can be levied for not disclosing the source. If you have disclosed your source, then you can deposit unlimited money in your account (Income Tax).