Most of the citizens in our country choose to open a bank account to save money. It is a very convenient way to keep it safe and the consumers also get some interest on the amount. In this country, a citizen can open any number of savings accounts, there is no limit to it. So, know how much amount can be deposited, the interest and tax rules, here.
According to the information given, one has to keep a minimum balance amount in their savings account, which means that it should not be at zero balance. You can deposit as much money as you can, there is no limit to that.
But, if you have deposited over Rs 10 lakh within a financial year, the bank informs the Central Board of Direct Taxes (CBDT). This same rule is applied to other forms of financing like cash deposits, mutual funds, bonds, and investments in stocks in FDs (Fixed Deposits).
As per the website, there is no limit to depositing money in a bank account according to the Income Tax Act or Banking Regulations. Furthermore, the bank account holder becomes liable to pay tax on the interest earned through the amount deposited in the savings account. On interest, the bank starts deducting 10 per cent TDS (Tax Deducted at Source). The website states further that although tax has to be paid on the interest you also have the option to avail tax deduction.
Section 80TTA of the Income Tax Act says citizens can get their tax amounts rebated up to Rs 10,000. More information states that if the interest amount is less than Rs 10,000, the individual will not be taxed. And if the account holder is above the age of 60, then on an interest up to Rs 50,000, they do not have to pay a tax.
If more than Rs 10 lakhs are deposited in the account, the Income Tax Department has the authority to ask you about its source. So, if the source is found to be questionable, the department could impose a 60 per cent tax, 25 per cent surcharge and 4 per cent cess.
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