Interest income tax on savings account balance?

Taxation
1

Hello,

I maintain an amount of 25,000Rs in my savings bank account. To my surprise, I found out that I am being paid interest on this amount quarterly. Please tell(detail), does one have to pay any tax on such an interest. I would understand if it were FD interest income but this is just savings account balance.

Thanks.

2

How does this query belong to Zerodha Trading Q&A Forum?

Why cant you google this?

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3

Actually, the account is linked with Zerodha, so initially I thought the interest generated is because of trading. After talking to the bank customer support they told me that it was normal.

Also previously I read some fake news in google and got caught in something fishy. Hence I thought to ask this query here, where the answers are somewhat reliable. Given I have started to fill an ITR3 so that was another reason to ask.

That being said, Sorry, if I pissed you off. Cannot delete this topic now, maybe this topic will be useful for some newbie in the future.

4

saving bank interest is a must in India ranging from minimum of 3.5 % to 4-5% p.a. on available balance .some banks like Kotak or Yes bank do provide 6% too on balance above one lakh. the interest is taxable if it exceeds 10000 per year.

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5

Yes if the total interest in the financial year is greater than 10000rs. If the bank has deducted tax it shouldn’t have then you can claim tax refunds.

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