Income Tax Rules: Know the limit of depositing cash in bank account, otherwise you will be fined

New Delhi Media, People use savings account to deposit cash and sometimes to withdraw large amounts at once. But do you know that there are some rules related to it, if not followed, you may have to pay a penalty. If your answer is no, then let's know in this news-

Know the rules before depositing money in Saving Account-

There is a limit on cash deposit in a savings account. You can deposit up to Rs 1 lakh in cash in a day. According to a report, if you deposit Rs 10 lakh or more in a financial year, then you will have to inform the Income Tax Department. But if you have a current account, then this limit is Rs 50 lakh. 

Know what is section 194A-

If you withdraw more than Rs 1 crore from your savings account in a financial year, then 2% TDS will be deducted on it. Those who have not filed ITR for the last three years will have to pay 2% TDS, that too only on withdrawal of more than Rs 20 lakh and if such people have withdrawn Rs 1 crore in a financial year, then 5% TDS will be levied on them.

Section 269ST-

Under section 269ST of the Income Tax Act, if a person deposits Rs 2 lakh or more in cash in a particular financial year, a penalty will be imposed on it. However, this penalty is not imposed on withdrawing money from the bank. Let us tell you that TDS deduction is applicable on withdrawals above a specific limit.