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.

Improve this question
1

1 Answer 1

Reset to default
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.

Improve this answer
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.
    – Mangu Singh Rajpurohit
    Commented 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 .