If you are constantly doing big transactions from the bank, then this information is very important for you that after a certain limit, the amount deposited in the bank can be taken away from you by the government. This rule applies to current accounts as well as normal savings accounts. However, the limit of keeping money in both is different but due to lack of information, your money can be wasted.
If you are constantly making big transactions from your savings account, then be cautious. Any money you put in your savings account above Rs 10 lakh is automatically reported to the income tax department. Income tax department may ask you about the source of money received after Rs 10 lakh and if you are unable to tell the source or you do not want to give information about this money, then it can be a loss-making deal for you.
What do the experts say?
Jabalpur-based Chartered Accountant Anil Agarwal says, “If you have done a transaction of more than 10 lakhs in your savings account and you are not able to provide the correct information of the money above 10 lakhs to the Income Tax Department, then a penalty of 60% is recovered from you as tax and about 18% is levied as another processing fee. In this way, 78% of the money above 10 lakhs goes to the government treasury. Before Corona, the penalty was up to 99%.’
Big businessmen are always under surveillance. Businessmen often do their transactions through current accounts. More money can be taken and given in current accounts, but if any transaction above Rs 50 lakh is being done in the current account and the correct information is not provided to the Income Tax Department, then similar penalties can be imposed on the current account as well. Chartered Accountant Anil Agarwal says, “Similarly, if you deposit or withdraw more than Rs 20 lakh from any account, then the bank deducts one percent TDS. Apart from the bank, the registry office also sends information about transactions of big money to the Income Tax Department. After these rules of the government, there has been some control on black money.