Savings bank account transaction limit: Everyone has a bank account today. It is often seen that most people prefer to open a savings account. But let us tell you, many people are not aware of all the rules related to savings account (bank account rules). Actually, many times people do some such transactions from their savings account due to which they fall victim to trouble. In most cases, they also have to respond to the income tax notice along with the penalty. Let us know in detail in the news whether you are also making this mistake-
Nowadays every person, whether salaried or self-employed, keeps a savings account to meet his banking needs. Savings account is not only a means of keeping your money safe (bank account rules) but also gives interest on it. However, have you ever wondered how much money can be deposited or withdrawn in a savings account so that it does not come under the radar of the tax department (saving account rules)?
What is the deposit and withdrawal limit
To control black money and increase the tax base, the government has directed entities like banks, corporates, post offices and NBFCs (bank transaction limit) to submit financial reporting statements (SFT). This statement has to be submitted when the transaction in the savings account exceeds a certain limit (saving account transaction rules).
1. If the account has deposits and withdrawals of more than 10 lakhs: It is mandatory for banks to report deposits and withdrawals of Rs 10 lakh or more in a financial year in savings accounts. This limit is the total deposits and withdrawals in all savings accounts (savings account transaction limit).
2. This is the limit for (FD): This limit is Rs 50 lakh for current account and time deposit accounts (FD). That is, if you (FD account rules) make a cash deposit or withdrawal of Rs 50 lakh or more in your current account, then the bank will have to report it.
Other transaction limits
Not just cash deposits and withdrawals, but other financial transactions are also reportable. Let’s find out which transactions are required to be reported:
1. Purchase of Bank Draft, Pay Order, Banker’s Cheque : Reporting of Bank Draft, Pay Order, Banker’s Cheque purchased by cash payment of Rs 10 lakh or more is mandatory (cheque transaction rules).
2. Credit card bill payments: Cash payments of Rs 1 lakh or more, and payments by modes other than cash of Rs 10 lakh or more are reportable.
3. Bond or debenture purchase: Companies have to report purchase of bonds or debentures amounting to Rs 10 lakh or more.
4. Purchase of shares: Purchase of shares issued by companies for an amount of Rs 10 lakh or more is reportable.
5. Investment in mutual fund units: Purchase of mutual fund units for an amount of Rs 10 lakh or more comes under reporting.
6. Sale of foreign exchange: Sale of foreign exchange amounting to Rs 10 lakh or more is reportable.
7. Property buying or purchasing: Buying or purchasing of property amounting to Rs 30 lakh or more comes under reporting.
Things to keep in mind
Whenever you make a deposit or withdrawal from your savings account, keep these limits in mind. If you transact beyond the prescribed limit, your information will be reported to the tax department, which may put you under scrutiny. Plan your finances in such a way that you follow these rules and avoid any unpleasant situation.
