Income Tax Update: How much money can be kept in a savings account, know the income tax rules..

In today’s time, it is very important to have a bank account. This makes any financial transaction easier. With digital banking, financial transactions take place in a jiffy. You can open a savings account and a current account. Every account has its benefits. In such a situation, a question arises how much cash can you deposit in your savings account?

How much cash should you keep in your savings account?

People keep their savings in savings accounts. Many people have a question in their mind how much money can they deposit in this account? Let us tell you that there is no limit on keeping cash in this account. This means that you can keep as much money as you want. You should take special care of one thing you should keep only that much cash in this account which comes under the purview of ITR. If you keep more cash, you have to pay tax on the interest you get.

What information to give to the Income Tax Department?

You have to inform the Income Tax Department about how much interest you get in your savings account. Along with this, how much money do you keep in the account? The interest you get from your savings account deposits is added to your income.

For example, if a person’s annual income is Rs 10 lakh and he gets interest of Rs 10,000, then the total income of that person is considered to be Rs 10,10,000. If a person keeps more than Rs 10 lakh in cash in a financial year, then you will have to inform to the Income Tax Department. If you do not do this then the Income Tax Department can take action against you.