How to Prevent Income Tax Notices on Your Bank Account: Smart Savings Account Tips
Since bank savings accounts are monitored by AI, you might get a notice from the tax department if you don't have proper documents for the source of your money. It's important to know the rules about these limits.
Income Tax Notice
Heard of someone getting a tax notice? It could happen to you too, mainly due to large bank transactions. The tax department now uses AI to monitor accounts. Not responding correctly can cause big trouble.
Bank Account Transaction Rules
Tax expert CA Kamalesh Kumar says not to transfer large sums at once. If ₹10 lakh or more is deposited in a year, the bank reports it directly to the tax department, risking a notice.
Savings Account Rules
For large transfers (over ₹10 lakh), have a clear source. Frequent large transactions raise suspicion. Always keep documents showing where the money came from, like from a relative.
Bank Account
PAN and KYC are a must for large transfers. Banks monitor activity and will question unusual deposits. Following the rules helps you avoid the risk of a tax notice from the department.
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