How to Show Interest Income From PPF , POSA & SSKY

Show it as exempt income under Section 10(15) in Exempt Income Columns. Extra Income above the specified income will be chargable at slab rates applicable to the individual.

PPF interest is exempt u/s 10(11) (PPF is a notified fund) and Sukanya Samriddhi interest u/s 10(11A); report both under exempt income. Post office savings interest is exempt u/s 10(15)(i) only up to Rs 3,500 (Rs 7,000 for a joint account), in both regimes: show that part as exempt and only the excess under Other Sources, where 80TTA/80TTB applies in the old regime.

Settling the open points:

• PPF interest is exempt under Sec 10(11) (PPF is a notified fund). Sukanya Samriddhi interest is exempt under Sec 10(11A). Both apply under the old and new regimes.

• Post Office Savings Bank interest is exempt under Sec 10(15)(i) up to Rs 3,500 (single) or Rs 7,000 (joint) a year. The excess is taxable. Sec 80TTA (up to Rs 10,000, old regime only) is a separate deduction on top of this.

• Minor's accounts: interest is exempt, so clubbing under Sec 64(1A) does not matter. If any of the minor's income is taxable and clubbed, Rs 1,500 per child is exempt under Sec 10(32).

• How to report: show only the taxable part of POSB interest in Schedule OS (savings interest), and claim 80TTA there if under the old regime. Report PPF, SSY and the exempt POSB portion in Schedule EI (in ITR-1, "Exempt income"), choosing 10(11), 10(11A) or "Others" with the descripttion "POSB interest u/s 10(15)(i)".

• AIS will show the gross POSB interest. The split between OS and EI explains the difference, so no mismatch notice is triggered.

These exemptions continue under the Income-tax Act, 2025 from tax year 2026-27.