The people always have a confusion regarding salary account and savings account, actually what is the exact difference between salary account and savings account. In real both this account has same features. Let us go in deep with topic
Normally salary accounts are opened by the employer and give the complete authorisation to respective employee, So that employer can deposit the salary and same time the employee can manage their salary through this salary account. Basically, salary accounts not required to maintain any minimum balance so that it can be also considered as a zero balance account. Today many of the banks are offering different types of salary account but most of the features associated with all these accounts are same like Debit Card with attractive benefits, Loan facilities, Credit Card with a high limit of credit facility. However if salary account is not used for more than three months without any transaction it will be turned to a savings account and the benefits and features associated with salary account will also get discarded.
A savings account is a normal bank account can be opened by anyone to manage their savings. When compared with salary account, savings account has different variants such as Regular Savings Account, Privilege Savings Account, Junior Savings Account, Basic Savings Account etc. Savings account will take consider the interest for the savings but for salary account, the interest will not take in account. There is an option for transferring already existing savings account to salary account if your employer also has the accounts in the same bank
Job changes are natural in every industry so for an employee point of view there is always a chance to discontinue the use of existing salary account and start managing a new salary account whenever they joined a new company. In such cases most of the people don’t close that old salary account, it will naturally turn to be a savings account and even if we try to close that account later then the bank will charge penalty.
Do you think CBDT should extend Tax Audit Report and relevant ITR Due Date? Please Comment, Vote, Retweet and Like.— Tax Guru (@taxguru_in) September 18, 2018