Bank Account Cash Withdrawal: If you frequently withdraw large amounts of cash from your bank account, be cautious. The Income Tax Department may be keeping an eye on you. Let’s find out why.
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Savings Account Cash Withdrawal: Even if you have a savings account in the bank, you still have to pay special attention to some things. If you do not keep track of your account transactions, you may receive an income tax notice. If you want to avoid getting into this mess, then definitely read this news. Let us know when the Income Tax Department keeps an eye on the savings account.
According to the report of ET Times, if you withdraw large amounts from the savings account repeatedly, the bank reports it to the Income Tax Department. The Income Tax Department looks at that report and if it finds something wrong in it, it can issue a notice to the bank account holder. Apart from this, if the cash flow in the bank account increases, then also the Income Tax Department keeps an eye on it.
What are the rules for withdrawing cash from a bank?
It should be noted that rules apply to cash withdrawals from a bank account. For example, HDFC Bank allows free cash withdrawals of up to ₹1 lakh per month. After four free transactions, a fee of ₹150 per withdrawal may apply. Even after that, if you withdraw more cash, the bank goes into alert mode and informs the Income Tax Department. If you fail to respond to an Income Tax notice, the Income Tax Department may impose a penalty.
You may receive a notice even after making a deposit.
If you deposited ₹10 lakh or more in cash into your savings account during a financial year (April 1 to March 31), the bank will provide this information to the Income Tax Department. In such cases, the Income Tax Department may investigate your income and expenses, especially if the transactions do not match your income. Therefore, it is always important to keep a record of all your transactions so that you can respond if you receive a notice from the Income Tax Department.
EPFO has changed these major rules, how will it affect you? Read the details.
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