0

I am new to the world of finance and taxation. I am aware that income earned through interests on savings is taxable in India, if it exceeds Rs 10000. But is the money saved taxable?

Apologizing for newbies question.

Thanks in advance.

1

1 Answer 1

2

But is the money saved taxable?

Not sure I understand the Question. If say you have salary of Rs 5 Lacs, after paying taxes and expenses, lets say you save Rs 1 lacs.

If you keep this 1 lacs in savings account. You will get interest. If this interest is less than Rs 10,000/- it is not taxable. If it is more that Rs 10,000 then the additional amount is taxable. i.e. if you get a savings bank interest of Rs 15,000/- the difference Rs 15,000 minus Rs 10,000; i.e. Rs 5000 is taxable.

Note if you keep the 1 lacs in Fixed Deposits, then all interest even if you get Rs 1 is taxable.

Edit:
If you invest the Rs 1 lacs in Tax Saving FD [lock-in period of 6 years], then Yes. You can claim deduction under section 80C.

1
  • I mean I am saving Rs. 100000 in a year, can I get tax deduction for Rs. 100000, that I have saved in the bank. Oct 3, 2016 at 3:20

You must log in to answer this question.

Not the answer you're looking for? Browse other questions tagged .