The government has decided to levy tax on the interest obtained on Post Office savings schemes from the current financial year. The Central Board of Direct Taxes ( CBDT )) has brought out a notification in this regard recently, which stipulates that any interest earned beyond Rs 3,500 (in case of individual accounts) and Rs 7,000 (in case of joint accounts) will be taxable from the running fiscal.
The CBDT– which is the administrative authority of the Income Tax Department– has issued the notification to all the tax collection ranges across the country for implementation.Taxpayers will have to reflect this investment on their income tax returns.”Taxpayers who now invest in the post office saving accounts schemes will now have to show the interest earned on this scheme while filing their income tax returns. Interest upto Rs 3,500, in case of single accounts and and Rs 7,000 in case of joint accounts, is exempted,” a senior I-T official said.
The CBDT– which is the administrative authority of the Income Tax Department– has issued the notification to all the tax collection ranges across the country for implementation.Taxpayers will have to reflect this investment on their income tax returns.”Taxpayers who now invest in the post office saving accounts schemes will now have to show the interest earned on this scheme while filing their income tax returns. Interest upto Rs 3,500, in case of single accounts and and Rs 7,000 in case of joint accounts, is exempted,” a senior I-T official said.
The Assessing Officer (AO) will compute the tax on the interest earned, beyond the exemption limit, accordingly, he said.
The current interest rates for Post Office savings deposits is 3.5 per cent per annum.
The minimum investment limit in this scheme is Rs 50 while the maximum limit is Rs one lakh for an individual account and Rs 2 lakh in case of a joint account.
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I have a joint MIS account in my and my wife name and have invested Rs. 9.0 lacs( max limit). I want to know how much interest amount of total Rs 6000 earned out of it has to be included in my income for the current financial year i.e. will it be 3000 in my income and 3000 in my wife s income.
my post office mis income for f.y:2010-11 [400*12 = 4800] this is taxable or not ?
govt can only put additional Taxes on Poor people of this country,they are not able to collect Taxes from corporate people.A M.P., M l A,comes from service class or some lower clASS,BECOMES Rich, HOW!
Govt is not able to raise the Pension of Poor Employee Family Pension scheme person covered under Industrial scheme, but they can put Taxes on poor people very fast.
Income tax deduction is good. BUT those who investing in nsc for 6 years not cacelling the deposit should exempt fully tds. it is pure a govt required fund for six years as common public participated in this scheme for national savings NOT personal savings > govt should come with good schmes those who are not cancelling the deposit for long years should exempt fully tds > otherwise how people will participate in long wider growth particularly like infra etc > govt should help public not to deduct tds who is investing for 6 or more years scheme with no limit of investments.
Like that banks also should come for common public good schmes so that fund can be distributed for agri , reality sector for growth and expansion.
thanks
r
It is not clear if Senior Citizens Savings Scheme (SCSS) and Monthly Income Scheme (MIS) are covered by the new notification. A clarification will be greatly appreciated.
I think all schemes are taxable i.e. Post office Saving, R.D., MIS, Time Deposit etc. Since as per Govt. notification the wording used as ” Govt. decided to levy tax on the interest obtained on Post Office savings schemes”.
As per post office web site indiapost.gov.in, all the above saving schemes are included under the head “Post Office Savings Schemes”
Thanks
Dear Sir,
Thank you very much for your Providing Detailed Study of Income Tax Provision.
I Have a One Doubte Regarding Interest Earned from Post office Saving Tax Slab for During the Financial Year 2010-2011,Assesment Year 2011-2012.
i am not clear with policy declared by rbi cbdt on postal schme whether all schemse are taxable or only savings account what about other schemes like mis senior citizen rd kvp nsc time deposit pl clarify and post it on mail add
Whether the tax is levied on Savings A/c alone or on monthly income and RD schemes also?
Is the Post Office MIS scheme interest also taxable under the new rules?
Our corrupted govt. have money to safe guard its corrupted public servants, officials, terrorists etc. but don’t have money to give more interest on the public’s investment,subsidiary to petrol, kerosone, diesel, LPG. Every day basic commodities prices are increasing in a rocket speed, what the common people and middle class people will do to survive. Our basic commodities prices are increasing becasue the govbt. has taken bribe and given retail licenses to Reliance, TATA, Birla, More…etc. they are the price controllers.
Govt. want people to cast their valuable votes and later they forget to think about what they said beofore election. In our country, if a person commits a big crime like rape or murder, then only he is eligible to stand in election. Our great people have made it a practise “one note for a vote” and they never protest against criminal candidates. In our voting machines there are options to vote for various parties there should be one more option saying nobody is fit to be elected as a minister or a particular candidate is not fit to contest for election.
There is not doubt going forward our great corrupted govt. will introduce tax on air, water, cough, fart, nature call tax…etc. But still our people will keep quite and do nothing. They will accept what ever they say.
Last but not least our govt. is already duducting TDS for post office agents for what ever amount commission he/she will get and it does not even think to increase the percentage of the commission. It will always think how to squeeze people like sugar cane and ensure that all the the people’s earnings should go to govt. in the form of tax so that our corrupted ministers can keep it in swiss bank as black money and use that money for party funds and all other non productive work. On the other hand it wont even think how a common man struggles to earn his daily bread, how the post office agents face the problems in post office and with investors, even today are thousands post office agents run their family by the commisson what they get. On the other hand the govt. without thinking a second thought, the govt. will give huge tax exemption to actors, circket players but if a common man pay tax a Re. less, govt will ensure that it will seize his property and also ensure that his family is on road with no security or protection.
Many many thanks to our people who will get adjusted to anything.
Is it only pertaining to Savings account or for all schemes like MIS / Recurring Deposit etc.?