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Revised Query 20211018 on Income Tax

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Venkat

69 Points Posted on 18 October 2021

Hi ,

It seems there are different replies to the below query. I would request to the person responding with a reply to do it with full responsibility & knowledge

. Thank you

" Is tax exempted on post office savings bank account interest ( Single holder) upto ₹ 3500/- in a financial year ( still available to tax payers or the same has been abolished)."
If still available then Post office sb account interest upto ₹ 3500/- needs to be shown under exempted income in ITR & the same shouldn't be added to other iinterest income from banks.
Moreover 80 TTA (₹ 10000 ) exemption can be availed over & above this exemption of ₹ 3500.
Any amount of post office sb account interest above ₹ 3500 would be subjected to tax and need to be added (total income from all sb Interest.
Please correct me if I'm wrong.

Thanks

Replies (4)

Quick Summary

This discussion clarifies the tax exemption on interest earned from post office savings accounts for single holders. Interest up to £3,500 per financial year is exempt under Section 10(15)(i) of the Income Tax Act and should be declared as exempted income in your ITR. This exemption is separate from, and in addition to, the £10,000 deduction available under Section 80TTA for savings account interest. Any interest exceeding £3,500 is taxable.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121526 Points Posted on 19 October 2021

1. YES. Interest on savings bank account upto Rs. 3500/- is exempt under section 10(15)(i) of the income tax act, vide notification no. G.S.R. 607(E) dated 9 June 1989.

2. Correct.

3. Yes.

4. U R Correct..