Post office savings account interest exemptions under new tax regime-reg

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This discussion clarifies how to claim tax exemptions for post office savings account interest under the new tax regime. While the interest is exempt up to certain limits (Rs. 3,500 or Rs. 7,000), users were experiencing issues reporting it correctly in ITR-1/ITR-2. The solution is to declare the exempt interest solely in Schedule EI (Exempt Income) and deduct it from Schedule OS (Other Sources) if previously reported there, ensuring it's not double-counted and is correctly reflected for tax calculation.

Sethu Raman

Sethu Raman (Querist)

13 July 2023 Under new tax regime also , the post office savings account interest is excempt u/S 10.15.1 for Rs.3500 or Rs.7000.

it is possible to enter/add in ITR1/ITR2, under new tax regime, under income from other sources, under exempt amount from income under any other category to report only.
But system is not taking for calculations this amount .
Pl kindly clarify how to claim this ?

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

14 July 2023 1. Yes, max Rs. 3500/-
2. Declare it under Schedule EI, interest.

Sethu Raman

Sethu Raman (Querist)

14 July 2023 Sir, I have declared in this schedule only . But system is taking this as " only reporting purpose " and the amount is not deducted from the taxable income. I Have clearly mentioned in my query itself. That is the issue. I have checked in online ITR-1, offline excel ITR-1 utility version 1.1 and Desktop offline utility version 1.3( the latest version) . Pl check and give your reply/solution. Thanks.

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

14 July 2023 You have to report the amount only in Schedule EI, and deduct the amount from Schedule OS, if already reported. No need to declare the amount at both places.

Sethu Raman

Sethu Raman (Querist)

14 July 2023 Thanks a lot sir for your prompt reply. Have a good day.

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

14 July 2023 My pleasure...
Good Day....

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