Income tax rule, Dec. 14 -- Have you ever considered how much cash you can deposit and withdraw in your bank savings account in a fiscal year to avoid being investigated by the income tax authorities? Personal finance experts say that as per income tax regulations, the total cash deposits or withdrawals in a savings account during a financial year should not exceed Rs.10 lakh.
Any cash deposit that exceeds Rs.10 lakh across all of your savings accounts within a fiscal year (April 1-March 31) should be reported to the income tax department. Banks must disclose such transactions even if they are spread over several accounts.
"Exceeding this threshold is considered a high-value transaction. Banks or financial institutions must report it to...
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