Taxation of Interest Received From Post Office Savings Bank Account

Interest earned on Post Office Savings Bank Account is presently exempt under section 10(15)(i) of the Act, vide notification no. G.S.R. 607(E) dated 9 June 1989. The said notification is amended to provide that such interest from Post Office Savings Bank Account will be exempt as follows:

-        Rs. 3,500 in case of individual account

-        Rs. 7,000 in case of joint account

The above amendment is applicable from 3 June 2011.

(Notification No. 32/2011 F. No. 173/13/201 1-ITA.I dated 3 June 2011)

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