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Interest on Post Office savings account taxable from current fiscal

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 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 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.

Categories: Income Tax

View Comments (12)

  • 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.

  • 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

  • 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.

  • 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.

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