Banking transactions and savings profits are subject to significant tax differences based on your filer status. If you’re listed as an Active Taxpayer, you enjoy lower tax rates on profits, withdrawals, and various bank instruments, saving thousands each year.
Tax Comparison: Filer vs. Non-Filer in Banking
| Banking Activity | Filer | Non-Filer |
|---|---|---|
| Profit on Bank Deposits / Savings Schemes | 10% | 15% |
| Profit on Debt (Public & Private Companies) | 4.5% | 9% |
| Tax on Bonds, Certificates, Securities, Debentures | 15% | 25% |
| Commission Income (e.g., banking, agency, etc.) | 12% | 15% |
| Online Money Transfers Over Rs. 25,000 | 0.3% | 0.6% |
| Bank Withdrawal Over Rs. 50,000 | 0.3% | 0.6% |
| Payment Order / Demand Draft / Cross Cheque Over Rs. 25,000 | No Tax | Rs. 600 per transaction |
Don’t Overpay – Be a Filer
Becoming a filer allows you to:
- Save thousands annually in banking taxes
- Avoid extra charges on withdrawals, drafts, and online transfers
- Enjoy higher net returns on your savings and investments
Bonus Tip: Start a Side Hustle
Looking to boost your income? Consider launching a side hustle such as freelancing, e-commerce, or a small business. Not only does it provide additional financial security, but it also helps you explore your passions — all while being tax smart as a registered filer.