Tax on Post Office Savings

look at the post office savings scheme, where the maximum ceiling of POSB is 1 lac for individual and 2 Lacs for joint, and interest exempted is fully exempted upto the ceiling level 

however if one play somne tricks and open accounts in multiple joint names, or multiple post offices, then his any one post office account would be tax free and others would get taxed.

Previously the Post office savings account can be opened for an amount not exceeding Rs.100000/- or Rs.200000/- jointly , in one or more accounts. But now anyone can open for any amount provided any interest above Rs.3500/- is taxable.

I think it has just eased the job of an assessee from opening many POSB account since the limit of Rs.100000/- or Rs.200000/- has been eliminated.

They would, however be taxable for any interest earned above Rs.3500 or Rs.7000, whichever is appropriate.