Exemption us 10(26)

Mr. A, a pensioner with a salary below the taxable limit, is exempted under Section 10(26) of the IT Act. To exempt his deposit income (interest on deposits), he can follow these steps: 1. _File ITR-1_: Mr. A should file ITR-1 (Income Tax Return for Individuals) as his income is below the taxable limit. 2. _Show deposits in Schedule SI_: In ITR-1, Mr. A should show the interest earned from deposits in Schedule SI (Details of Income from Sources other than Salary). 3. _Claim exemption under Section 10(26)_: In Schedule SI, Mr. A should claim the exemption under Section 10(26) for the interest earned from deposits. 4. _Provide deposit details_: Mr. A should provide the details of the deposits, such as the name of the bank, deposit account number, and interest earned, in the "Details of Exempt Income" section of Schedule SI. 5. _No TDS liability_: Since Mr. A is exempted under Section 10(26), there will be no TDS liability on the interest earned from deposits. Note: Mr. A should ensure that he meets all the conditions specified in Section 10(26) to avail the exemption.