People from all walks of life, including salaried individuals, are required to have at least one savings account, with steady income earners opening multiple accounts for safe money storage. The amount of money that can be deposited and withdrawn from a savings account in a financial year to avoid taxation is typically unlimited.
How much may you put into a savings account in a year to avoid being noticed by the tax man?
According to tax experts, the government has mandated that banks, corporations, post offices, and NBFCs, among others, provide the Statement of Financial Reporting (SFT) whenever transactions in a savings account surpass the specified threshold in an effort to reduce black money and broaden the tax base. Cash deposits and withdrawals, investments in shares, debentures, time deposits, and mutual funds, credit card charges, foreign exchange purchases, transactions involving real estate, etc. are all covered by these transactions. Banking institutions are required by tax rules to disclose cash deposits and withdrawals of at least Rs 10 lakh.