How much money can we keep in the bank without tax? This question comes to the mind of most people who have a doubt regarding their bank account. Many people think that if we have more than 1 lakh rupees in our savings account, then ED will raid our house.
Many such doubts increase further when we get fake information through social media.
The first misinformation on How much money can we keep in the bank without tax is that if you deposit Rs 50,000 or more in a savings account, you will get an income tax notice immediately.
By exaggerating any information, confusion spreads.
Whereas the rule is that if you deposit 50 thousand cash anywhere, you must give your PAN number. And this is also so that black money doesn’t get promoted!
The Income Tax Department will have no objection to your deposited money if your money is legal and you are not hiding the source of income; you can deposit any amount in the bank.
Even though the Income Tax Department does not stop us from depositing any amount, is there any limit beyond which tax is levied? If yes, then it is important to know how much money can we keep in the bank without tax.
And if you have to pay tax, can we get any exemption on that? You will get information about all these.
how much money can we keep in the bank without tax
There is no tax on the money deposited in your bank, but if you do more than 10 lakh transactions in a financial year, you can get a notice from the Income Tax Department. Here also, you do not need to be afraid if you have the right source of income.
Your main question is, How much money can we keep in the bank without tax? The answer is that there is no tax on your deposited money, but there is a tax on the interest earned from it.
You will have to pay tax if you get more than 10 thousand rupees interest in a financial year by combining all your savings accounts.
And if you get less than 10 thousand rupees interest from your savings account, then you can get income tax exemption under 80TTA, says the rule of the Income Tax Department of India.
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Some intelligent people think that if we keep small amounts of money in different accounts, we will escape from the eyes of the Income Tax Department, but this is the people’s biggest misconception.
The information about all your bank accounts is already with the government through KYC.
Whenever you do any significant transaction or keep money beyond a specific limit, you automatically come under the scrutiny of the Income Tax Department. That’s why you need to know the proper rules.