Income Tax: How many savings accounts can a person keep? If you want to avoid income tax notice, know the rules..

Income Tax: How many savings accounts can a person keep, income tax, nosaving account limit? The income tax department has made many rules (saving account rules) for banks and account holders, including tax. The department also sends a notice immediately if these rules are violated.

The department has also set rules regarding savings accounts (IT rules for savings accounts), but most people do not know about these rules. Due to this, there remains a doubt about how many savings accounts a person can keep. It is important for everyone to know these rules to avoid the department's notice.

A person can keep so many accounts and deposit money-

There is no fixed and prescribed rule regarding keeping a savings account in the rules of the Income Tax Department. The income tax department also does not give any notice (IT notice kab aata h) regarding the number of savings accounts. According to this, anyone can keep any number of savings accounts, and any amount can be kept in those accounts. Yes, there is a rule regarding how much money can be withdrawn or deposited in the account at one time or in a year (bank account rules).

How much money can be withdrawn and deposited in a year?

If 10 lakh or more (cash deposit limit) is deposited in cash in any savings account at one time or at different times in a financial year, then you can get a notice from the department. If such an amount is deposited in more than one account (cash deposit rules), then you can also come to the attention of the department and receive a notice. Similarly, if the same amount is withdrawn from the account at one time or more times in a year, then the department can send a notice.

A person's transactions and expenses are monitored-

The Income Tax Department's rule applies to transactions (cash transaction rules) and spending. The Income Tax Department keeps a close watch on how much money was withdrawn from the savings account and where it was spent. The details of the expenditure are collected when the person uses a credit or debit card, otherwise, the department may consider it to be spent in cash.

Be careful about cash transactions -

An income tax notice usually comes when the rules of cash transactions are violated. It will be better for you not to do more than 10 lakh transactions (cash transaction rules) in a financial year; only then can the department's notice be avoided. Apart from this, the amount in a single transaction should not be more than 2 lakhs.

This is how the department gets to know about every transaction -

If a transaction of more than 10 lakhs in a financial year and more than 2 lakhs at one time is done, then the department's notice (notice on cash transaction) can come. PAN number is linked to the bank account, and through this, the Income Tax Department (IT department) gets complete information.

This is how transaction information reaches the department-

If a bank customer's PAN number is not linked to the bank account, then the bank from which you withdraw or deposit more than Rs 10 lakh will inform the income tax department. Cooperative banks and post master generals are also responsible for giving this information. The income tax department has appointed them for this task.

Response to the notice has to be given within the stipulated time -

If more than Rs 10 lakh is spent in cash to buy a bank draft or to get a pay order, then there is a high possibility of getting a notice. Some products have been given the status of prepaid instruments by the Reserve Bank of India. If someone spends more than Rs 10 lakh in a financial year to buy these, then apart from sending a notice (IT notice rules), other action can also be taken against him. The department's notice has to be replied to within the stipulated time.

Transaction rules for the current account -

No customer can deposit more than Rs 50 lakh in a current account in a financial year (FY). A notice can also be received for withdrawing more than Rs 50 lakh from the current account (current account rules). A notice can be sent by the Income Tax Department if this is done through a cheque or any other medium. If you want to avoid TIS, know the rules

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