What Income Tax Department Will Do If You Exceed Rs 10 Lakh Deposit Limit In Savings Account

The tax is levied on your income if it is above a certain limit as per the tax slabs. The Income Tax department can take action against the person if they skip the submission of the required Income Tax. The department does not only monitor your income but also your transactions. It also includes money deposited from your savings accounts for each day and year. RBI has put a limit on the deposit amount. You can deposit Rs 10 lakh in your savings account within a year without facing any problems from the Income Tax Department.

If you cross this limit, the bank immediately informs the Income Tax Department. You may get a notice from the department. You don’t need to have to pay tax on this. You will be inquired regarding the money’s source.

If an account holder is unable to tell where the money came from, the Income Tax Department can recover it from the account holder by imposing a 60 per cent tax, 25 per cent surcharge and 4 per cent cess on that amount. Let us tell you that the Income Tax Department sets a limit not only for a year but also for transactions in a single day.