Can I maintain a balance of ₹ 5 lakh in my savings account? Do I have to pay any tax?
It said the benefit of premature closure of small savings schemes would be offered to meet medical emergencies and higher education needs.
You do not have to pay any tax to the bank but interest income from savings bank account is taxable like any other income. Deduction is allowed in respect of interest received on savings bank account to individual taxpayers
Can I maintain a balance of ₹ 5 lakh in my savings account? Do I have to pay any tax to pay to the bank?
There is no restriction on the maximum amount you can keep in a savings bank account, either under income tax laws or under banking rules, but different banks have different rules, as account holders need to maintain a minimum balance in their savings account.
The balance is required to be maintained, failing which they incur a penalty. In such a condition, if there is no minimum balance to maintain a balance.
You do not have to pay any tax to the bank but interest income from savings bank account is taxable like any other income. Deduction is allowed in respect of interest received on savings bank account to individual taxpayers.
All persons are entitled to claim a deduction of Rs. 10,000/- under section 80TTA in respect of your interest income from savings bank account. Individuals who are resident for tax purposes and have completed 60 years of age get a higher deduction of Rs. 50,000/- under section 80TTB in respect of any interest received from banks including interest on savings bank account.
You do not have to pay any tax to the bank but interest income from savings bank account is taxable like any other income. Deduction is allowed in respect of interest received on savings bank account to individual taxpayers.
All persons are entitled to claim a deduction of Rs. 10,000/- under section 80TTA in respect of your interest income from savings bank account. Individuals who are resident for tax purposes and have completed 60 years of age get a higher deduction of Rs. 50,000/- under section 80TTB in respect of any interest received from banks including interest on savings bank account.
So if your total income after claiming this deduction is more than the principal exemption plus savings bank interest, you may have to file your ITR and pay tax at the applicable slab. Even banks do not have to deduct any tax on the interest deposited on the savings bank account.
