We use a savings account to help us save money. There are numerous regulations pertaining to savings accounts. Many people don’t know about these regulations. The Income Tax Department may send you a notification if you withdraw more money from your savings account than is permitted. In this post, we’ll explain these guidelines.

Savings accounts are where we keep our savings. However, there is also a limit to this. The Income Tax Department may become aware of us if we have more money in our account than this cap. Many individuals still don’t know this. We shall explain the Income Tax Department’s regulations pertaining to savings accounts in this article. 

Transaction details will need to be provided in greater detail than this

Financial experts advise that the total amount placed into a savings account throughout a fiscal year shouldn’t be more than Rs 10 lakh. If it above this threshold, the Income Tax Department will need to be informed. According to Section 269ST of the Income Tax Act, the account holder is permitted to transact up to Rs 2 lakh in a single day. If he does more than that, he will have to give the bank an explanation.

This information is also provided by banks: –

As per the regulations, an individual is required to notify the bank if they deposit Rs 50,000 or more in a single day. The account holder must additionally submit his PAN information in addition to this. Form 60 or 61 must be submitted by the account holder if he does not have a PAN. However, transactions totaling more than Rs 10 lakh are regarded as high-value. The Income Tax Department receives information from the bank on these transactions.

How should you respond to a notice?

For whatever reason, we frequently make large transactions without disclosing them to the Income Tax Department. The department sends us a notice in such a case. What should we do in this circumstance is the question that now emerges. You should reply to such a notice if you receive it. You should include information about the relevant papers in your response to the notification. Statements, asset records, and investment records are examples of these documents. Experts advise speaking with a financial professional if you are having trouble answering the notification or with the documentation.

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