Section is introduced to provide deduction to an individual or a Hindu undivided family in respect of interest received on deposits (not being time deposits) in a savings account held with banks, cooperative banks and post office. The deduction is restricted to Rs 10,000 or actual interest whichever is lower this will only applicable to interest earned on an NRO saving account ie up to RS 10,000 & interest on NRE account is already exempt( limitless)