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People often maintain multiple accounts, one for managing their expenses and the other for keeping their money safe. But did you know that there's a deposit limit in a savings account, beyond which you could become subject to scrutiny by the Income Tax Department? However, many people are completely unaware of this rule. Today, we're going to explain it to you.

Information will have to be given about transactions exceeding the limit-

According to Income Tax rules, the total deposit amount in any savings account in a financial year should not exceed Rs 10 lakh. You are reading this news in Himachali Khabar. If this happens, the Income Tax Department can send you a notice. According to Section 269ST of the Income Tax Act, any account holder is allowed to make a maximum transaction of Rs 2 lakh in a day. If he makes transactions beyond this limit, he will have to explain the source of this amount to the bank. This rule is to prevent tax fraud.

Banks also provide information-

According to the rules, if a person deposits ₹50,000 or more in a single day, they must inform the bank. Account holders are also required to provide their PAN details. If a person does not have a PAN, they must complete and submit Form 60 or 61. Furthermore, transactions exceeding ₹10 lakh from an account are considered high-value transactions, and the bank reports this to the Income Tax Department.

What to do if you receive a tax notice?

Sometimes, if you fail to report large transactions to the Income Tax Department, you may receive a departmental notice. In this situation, it's essential to respond to the notice appropriately. When responding, you'll need to provide relevant documents, including your bank account statement, investment records, and property-related documents. Responding to the notice promptly and with the correct information is crucial to avoid legal trouble.