New Delhi8 minutes ago
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Before opening a savings account in any bank, it should be known that the bank in which you are opening the account is paying the interest on the savings account. There are many banks which are giving you more interest than Fixed Deposit (FD) on Savings Account. The country’s largest bank SBI is offering a maximum interest of 5.4% on fixed deposits. We are telling you about such banks which are offering great interest on savings account.
These banks are paying more interest on savings account
|Rate of interest (%)|
|IDFC First Bank||4.00-5.00|
|Union Bank of India||3.00-4.00|
|Punjab National Bank||3.00- 3.50|
|bank of india||2.90|
Tax is also to be paid on the interest earned on the savings account
Under Section 80TTA of the Income Tax Act, income up to Rs 10,000 per annum from interest is tax free in the case of savings account of a bank/co-operative society/post office. Its benefit is available to a person below 60 years of age or HUF (Joint Hindu Family). At the same time, for senior citizens, this exemption is 50 thousand rupees. TDS is deducted if income is more than this.
What to do if your total income is not taxable?
If your annual interest income from savings account, FD or RD is more than 10 thousand but the total annual income (including interest income) is not to the extent where it is taxed, then the bank does not deduct TDS. For this, senior citizens have to submit Form 15H to the bank and Form 15G to others. Form 15G or Form 15H is a self-declared form. In this, you state that your income is outside the tax limit. Whoever fills this form will be kept out of the tax net.
What is TDS?
If someone has any income, then after deducting tax from that income, the remaining amount is given to the person, then the amount deducted as tax is called TDS. The government collects tax through TDS. It is deducted on different types of income sources like salary, interest or commission received on any investment etc. Any institution (which comes under the purview of TDS) which is paying, deducts a certain amount as TDS.