22 May 2016
There is no restriction as to the maximum amount one can have in a saving bank account.
Saving bank Interest is also a taxable income and taxed as per your slab rate. from AY 2013-14 and onwards Under Section 80TTA is introduced to provide deduction to an individual or a Hindu undivided family in respect of interest received on deposits (not being time deposits) in a savings account held with banks, cooperative banks and post office. The deduction is restricted to Rs 10,000 or actual interest whichever is lower.
Yes there can be stipulation as to the minimum amount which you are required to maintain in your saving account either on daily basis of on average basis. This varies from bank to bank. A word of advice in case you happen to have such huge money please do not keep this in the saving bank account for even a single day even if you may need it within a week or so. Please invest this money in liquid funds scheme of a good mutual fund house, you will be able to get returns more than interest on saving bank account.
Abhishek Ranjan Singh ARS Solutions www.arssolutions.co.in +919022838615
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