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I would like to know if the money in the bank is taxable.

Let's say I have deposited some x amount in my savings account and the yearly interest is y amount. I know that this y amount is taxable, but what about the x amount that is continuously present in the account.

Will it be taxed when I'll be taking this x amount along with the taxed interest out of the bank? Is this x amount taxed too?

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Only the interest is taxable. The tax deduction by Banks is nominal. You should include the interest in your income and pay taxes as appropriate.

The original amount that is deposited is not taxable.

So if you keep say RS 100,000 in the Bank and get an interest of RS 10,000. The TDS would be RS 1,000. However you should include RS 10,000 as additional income and pay taxes as per tax bracket. If you are in 10%, nothing more to pay. If you are in 20 or 30% bracket, you have to pay additional tax.

  • "You should include this in your income and pay taxes as appropriate", what does this mean? What is "this" here? If it is the money in my savings account then why should I include this in my income as it is not my income, it is my savings. I just want to know that if the money is in my savings account and of course, after doing TDS(Tax Deducted at Source) then is this money which I will keep in my savings account taxable? I am not talking about interest, just this discrete money. Is this money taxable? – Anonymous Dec 31 '18 at 16:06
  • @Vivek does the last sentence not answer that? – D Stanley Dec 31 '18 at 16:19
  • Of course, it does but previous sentences bugged me. I got it now and thanks, everyone. – Anonymous Dec 31 '18 at 17:10

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