Go AD-Free with CAclubindia Pro and Daily Mobile Updates. Subscribe Now!

Exemption u/s 10(15)

D. B. VAGHELA (Retired DGM(Finance)BSNL) (45 Points)

14 August 2016

whether interest income from post office savings account is exempted u/s 10(15)? if yes, to what extent ?

Reply
Follow
Share

5 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (195388 Points)
Replied 14 August 2016

Deduct it u/s. 80TTA, with limit upto Rs.10,000.

D. B. VAGHELA (Retired DGM(Finance)BSNL) (45 Points)
Replied 14 August 2016

Thanks please. One Tax advocate has taken the interest income of Rs.2677/- credited in post office savings account as exempted u/s 10(15) in ITR 2. How far this is true?

Venkatesh Dangeti (CA Final) (885 Points)
Replied 14 August 2016

Interest up to Rs 3500 in Post Office Savings (individual account) Exempted from Income Tax

D. B. VAGHELA (Retired DGM(Finance)BSNL) (45 Points)
Replied 14 August 2016

Sir(s) , There are two different opinions on the issue.

1.Deduct it u/s. 80TTA, with limit upto Rs.10,000.
Read more at: /forum/details.asp?mod_id=368929&offset=1

2.Interest up to Rs 3500 in Post Office Savings (individual account) Exempted from Income Tax

In view of different opinions expressed above, concluding opinion of an expert CA supporting Income tax Departmental Act/Rules is solicitated please.
Read more at: /forum/details.asp?mod_id=368927&offset=1

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (195388 Points)
Replied 15 August 2016

There are not two opinions, but only different views. With one opinion over saving of tax.

Under both the sections, when tax saving option available, we are at freedom to choose any.

On these platform of Forum, we learn and discuss the different sections under different catagories.

A practical view, we prefer to choose deduction option rather than exempt one, because of its declaration possibility in the ITR; rather than keeping it clubbed in Exempted option.

Whether you take wheat atta as chapatti or paratha, depending upon your particular mood of that time, final aim is to beat hunger.