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Post Office TD Interest taxable?

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Charulatha Mohan

4 Points Posted on 16 June 2021

i have 4 5-year Term Deposits in the Post Office. I maybe getting more than 3 lakhs per year in interest. Is this income chargeable to tax. do I have to file my returns?

Replies (2)

Quick Summary

Interest earned from Post Office Term Deposits is indeed taxable under Income from Other Sources (IFOS). Even if tax has been deducted at source by the Post Office, you are still required to file your Income Tax Return (ITR). This is particularly important if you wish to claim a refund for the tax deducted, especially if your total income doesn't exceed the basic exemption limit.

CMA Poornima Madhava

CMA

13117 Points Posted on 16 June 2021

Yes, such interest would be taxable under IFOS. The post office would have deducted tax at source on such interest and you are required to file ITR in order to claim refund of such tax (provided you have no other income exceeding the exemption limit).