You might not be aware that interest income on saving accounts is not taxable up to 10,000 Rupees. If you earned 15,000 as interest from all your savings accounts (sum up interest from all your bank saving accounts), then you have to pay tax only on 5000 rupees.
You can open saving account with IDFC online that give you 4% interest but power packed with other benefits that you won’t get with any saving account
Rs. 250 discount on BookMyShow every month
Free access to domestic Airport Lounges
Unlimited use of ATM of other banks
Free Visa Signature Card.
Interest Income On NRE Account
Indian Government is very friendly to NRIs. Someone with NRE account doesn’t have to pay tax on interest income on saving or fixed deposits.
Some smart Indians residing abroad, take a loan from the foreign country at 3-4% and invest their income in India through NRE account and earn tax-free income at 8-9%. Point to note that their income from NRE account is tax-free in India, but it may be taxed in their residing country (as per country law).
Maturity Or Claim Amount By Life Insurance
As per amendments introduced in the Finance Act, 2003, any proceeds received on account of maturity/surrender of an insurance policy were exempt from tax only if the premium paid did not exceed 20% of the sum assured. As an example, if the annual premium is R10,000, to qualify for the exemption, the minimum sum assured under the policy was required to be R50,000.
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