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Salary account is a savings account with 0 minimum balance policy. Your employer will cut TDS from your salary before crediting it to your account. TDS calculation depends on your salary structure and your income slab. It really doesn’t matter how much money you keep in your bank account.

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I think tax will be applicable only if cumulative interest amount in a year is more than 40000 rs

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You mean TDS, but tax would be applicable above ₹10,000 which auto picked up while filling ITR and you have to pay taxes on it

You can keep as much amount as you would like in your account. Just keep in mind that if your interest earned out of it crosses Rs 10,000 annually, then only you will be charged tax on it.
For example - you maintained Rs 10,00,000 in your account for 1 year with 3 % interest. Then, your interest earned will be Rs 30,000 but since Rs 10,000 will be exempted, you will be paying tax on Rs 20,000 as per whatever tax bracket(10% or 20% or 30%) you fall in.

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Thank you for answering. It cleared my doubt.

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But, isn't tax applied on interest which is obtain from amount we have in salary account?

How much interest do they pay for savings account? Just 2-3% annually and even if you belong to 30% tax slab it will be like 0.5% of your total amount 😂

PS. You can’t save your 0.5% from any other account because they all are linked to your PAN

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