In 80TTA of the Income tax act, interest upto `10000 earned from all savings bank account is exempt from tax.
This is applicable for savings bank account, post office or co-operative banks.
If the interest earned from these sources exceeds Rs.
10000, the extra amount will be taxable.
What is the maximum amount I can maintain in savings bank without tax 2019?
Individual and HUF get a deduction U/s 80 TTA upto a maximum of Rs. 10000 on the interest you earn in Savings account. So, if your interest income is less than or upto Rs. 10000 then you are not liable to pay any tax.
How much money can I save in my bank savings account without tax?
You can save any amount of money into your bank account and there would be no tax. It is not the savings that amount to tax, but interest on it. Savings bank interest is fully taxable under other sources, however a deduction of upto Rs. 10000 is available undet section 80TTA.
What is the maximum limit of saving account?
Though there’s no limit to how much you can keep in a savings account, you should know the rules surrounding large deposits to savings accounts. When it comes to making deposits to a bank account, $10,000 is the magic number.
How much money can you have in savings before you pay tax?
Yet now the personal savings allowance (PSA) means every basic-rate taxpayer can earn £1,000 interest per year without paying tax on it (higher rate £500), equivalent to the interest on about £74,000 in the top easy-access savings account.