92. Whether interest earned from cumulative time deposit held under Post Office Savings Bank (Cumulative Time Deposits) Rules, 1959, is also exempt under clause (15)(ii) of section 10
1. Section 10(15 )(ii) provides for exemption from tax in respect of interest on various specified securities, interest on deposits in Post Office Savings Bank and bonus in respect of deposits under the Post Office Savings Bank (Cumulative Time Deposits) Rules, 1959.
2. The Board have considered a reference on the eligibility of interest received under Post Office savings Bank (Cumulative Time Deposits) Rules, 1959. Since the Post Office Savings Bank (Cumulative Time Deposits) Rules, 1959 is only one kind of account under the Post Office Savings Accounts, such interest in respect of Post Office Savings Bank (Cumulative Time Deposits) Account is also exempt under section 10(15)(ii ) to the extent to which the deposit does not exceed the maximum amount to be deposited or invested therein (in accordance with the regulations of the postal bank).
Circular : No. 410 [F. No. 178/68/83-IT (A-I)], dated 12-2-1985.
