5 Years Term Deposit Limits in Post Office

Interest earned is tax free up to Rs 10,000 per year. Income tax relief is available on the amount of interest under the provisions of section 80L of the Income Tax Act. The account can be transferred from one post office to another. Single accounts can be converted to joint accounts and vice versa.

Section 80L is no more in the statute book. No deduction from  interest on FDR to non-senior citizen assessee. Senior Citizen is eligible for total deduction of Rs.50,000 against interest on saving account and fixed deposit.