Is interest received from post office exempt from tax???

No. It is all taxable. What some of the schemes are exempt from is deduction of TDS like in MIS etc. Even Senior Citizen Scheme is subject to TDS. Currently PPF interest at Post office is exempt from tax. That will change once we migrate to EET regime in the new DTC.

Its taxable....

I'm afraid the replies given by Sunil & Megha are incorrect.Interest earned on P.O. SB A/c is tax-free.The max. amt that can be kept in the A/c is Rs.1 lakh(singly) and Rs.2 Lahks(jointly).

Dear Balaji,

Megha & Sunil are correct.Interest recieved from savings account in post office was exempt u/s 80L (deduction in respect of interest on certain securities,dividends,etc.).No deduction u/s 80L is available from assessment year 2006-07.

Yeah Mr. Balaji

Fatema is absolutely correct...80L has been withdrawn...

and still if u are sure than pls quote where it is written....

My dear Harshal/Fatema,

Interest on SB A/c in a post-office is exempt u/s 10 of I.T.Act.It is a tax-free income.

FYI,Sec.80-L covered interest on P.O. Time Deposits,P.O.Recurring Deposits,National Savings Scheme,POMIS etc. but not P.O. SB interest.

HI BALAJI!

If you r sure then pls attach reference like, i want to know the same if it is exempt.

Dear Ameet,

Rest assured,it is exempt.You can approach the P.O. and they'll provide you the reference material which will reflect the same.The pass-book issued by P.O. also has the details.

 /forum/messages/2009/8/41763_post_office_savings_bank_interest.asp

Thanks a lot frnds for ur replies.......

Dear all

Answer given by you all are incorrect.

As per sec10(15) intrest received on post office saving bank a/c is exempt upto Rs.5000

Dear all

Answer given by you all are incorrect.

As per sec10(15) intrest received on post office saving bank a/c is exempt upto Rs.5000