Income from other source

Interest on Post office time deposits taxable or not ?
And if taxable ,is there any exemption ?

Further in Case of MP this interest would be taxable or not ??
Replies (24)
Taxable but you get exemption u/s 10(15)....
10(15) exemption is for Post Office Saving Scheme n m talking about Post office time deposits ??
ok then there are allowed as deduction under 80C
but it is not taxable according to my study material
interest on post office term deposit is as good as your normal FD interest, hence it is taxable.
Is there any exemption for MP (Member of Parliament) ?
No, on this particular income, no exemption exists.
See, when you deposit in post office time deposit (POTD) it's principal amount would be allowed as Deduction u/s 80C if maturity period is above 5 years.

Interest amount would be fully Taxable but if received by Senior Citizen it is exempt u/s 80TTB Upto Rs. 50,000.

TDS:

Post office would deduct TDS on interest paid. y it. In case of Senior Citizen if there is amount of interest payable exceeding the above said limit of Rs. 50,000 then TDS under Section 194-A @ 10%. Although you have to show income under Other sources in any case and then claim the TDS from your Gross tax liability.
Income from Post Office Term Deposit is treated as Fixed Deposit. If it is for 5 years term then it is exempt u/s80c. Though the interest amount at the time of maturity is calculated as income in the hands of the depositor.
but in my study mat. interest on cumulative time deposits in post office ....whether exempted or not taxable i.e it is not considered ??
See, As far as CS study material as I earlier said you once that there might be mistakes crept in that that has been happened so many time (as I'm a CA finalist so in our syllabus too we have seen many mistakes).

As far as Cumulation is concerned in POTD interest it is generally cumulated quarterly but still Interest would have to been yearly and has to be offered for tax.

Suggestion:

Do remember that there is allowed Deduction u/s 80TTB ONLY FOR SENIOR CITIZEN Upto Rs 50,000 of interest.
but in my study material interest on cumulative time deposits whether exempt or not taxable ..i.e it is not considered ???
I fully concur with Mr. nitish point of view
I was also troubling with similar issues as Jaisika. You put it right @ Nitesh. 100% agree. Thank you and your answers are amazing 🙂

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
08 October 2026
SALES TELECALLER

HIRE NOVA

Lucknow

Graduate (Any)

View Details
Company
ARTICLESHIP 01 October 2026
Articled Assistant

KPSN & Associates LLP

Chennai

CA Inter

View Details
Company
18 September 2026
Accounts & Finance Specialist

ULTRA CHEMICAL WORKS

Thane

CA Final

View Details
Company
05 October 2026
Senior Accountant

Vision IT Peripherals Pvt Ltd

Mumbai

B.Com

View Details
Company
22 September 2026
Account Assistant

Chirag P Shah & Co. Chartered Accountant

Pune

B.Com

View Details
Company
12 October 2026
Chartered Accountant - Internal Audit

HKC | Chartered Accountants & Business Advisors

Ludhiana

CA

View Details
Company
12 October 2026
AUDIT , ACCOUNTS AND TAXATION

KDSS

New Delhi

B.Com

View Details
Company
ARTICLESHIP 16 September 2026
CA Article Trainee

SR BAGAI & Co.

New Delhi

CA Inter

View Details