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Provisions of section 10(15) of the Income Tax Act provides exemption towards various Interest Income. The provisions of said section 10(15) are explained in the present article.
Interest Income exempted under section 10(15) of Income Tax Act, 1961
Section 10(15) of the Income Tax Act consists of various sub-sections through which various interest income are exempted. Each such-sections are explained in the table below-
| Relevant sub-section of section 10(15) | Particulars of available exemption | Additional Conditions (if any) |
| (i) | Interest income or premium on redemption or other payments on notified securities; bonds; annuity certificates; savings and other certificates. | |
| (iib) | Interest income on notified Capital Investment Bonds issued before 1st June 2002. The exemption is available only to Individual and HUF. | |
| (iic) | Interest income on notified Relief Bonds. The exemption is available only to Individual and HUF. | |
| (iid) | Interest income on notified Bonds issued before 1st June 2002. The exemption is available to following persons-
|
Bonds should have been purchased by the non-resident Indian in foreign exchange.
Interest and principal are not allowed to be taken out of India. |
| (iii) | Interest on securities issued by the Department of the Central Bank of Ceylon. | |
| (iiia) | Interest income on deposits made with the scheduled bank with approval of RBI. | |
| (iiib) | Interest payable to the Nordic Investment Bank on loan advanced by it to a project approved by the Central Government. | |
| (iiic) | Interest payable to the European Investment Bank on loan granted in pursuance of framework agreement dated 25th November 1993. | |
| (iv)(a) | Interest received from Government or a local authority on money borrowed prior to 1st June 2001 from sources outside India. | |
| (iv)(b) | Interest received from an industrial undertaking in India on money borrowed by it under a loan agreement entered prior to 1st June 2001 with the approved foreign financial institution. | |
| (iv)(c) | Interest received from an industrial undertaking in India on money borrowed by it prior to 1st June 2001 in a foreign country. | Money is borrowed to purchase raw-material; plant and machinery; components outside India. |
| (iv)(d) | Interest received from the specified Industrial Finance Corporation of India on money borrowed from sources outside India before 1st June 2001. | |
| (iv)(e) | Interest received from other financial institution or banking company on money borrowed by it from sources outside India before 1st June 2001 under a loan agreement approved by the Central Government. | |
| (iv)(f) | Interest received from an industrial undertaking in India, on money borrowed by it in foreign currency under the loan agreement approved by the Central Government before 1st June 2001. | |
| (iv)(fa) | Interest payable by the schedule bank on deposits, in foreign currency, approved by the RBI. The exemption is available to non-resident or person who is not ordinarily resident. | |
| (iv)(g) | Interest received from a public company, which is eligible for deduction under section 36 (1)(viii). The main object of such a company should be providing of long-term housing finance. | The company should be formed and registered in India. |
| (iv)(h) | Interest received from public sector company in respect of notified bonds/ debenture. | The holder of the bonds/ debenture should register his name and holding with the public sector company. |
| (iv)(i) | Interest income from Government on deposits made by an employee of the Central or State Government or public sector company. | The deposits should have been made out of the moneys due to the employee on account of his retirement. |
| (v) | Interest on-
|
|
| (vi) | Interest on notified-
|
|
| (vii) | Interest income on notified bonds issued by-
|
|
| (viii) | Interest income received by a non-resident or person who is not ordinarily resident in India. Such income is earned by a deposit made on or after 1st April 2005 in an Offshore Banking Unit. | |
| (ix) | Interest income payable, by a unit situated in an International Financial Services Centre, in respect of monies borrowed on or after 1st September 2019, to a non-resident |
Table – Articles on Section 10 Exemptions
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Kindly Clarify , Where to Fill in ITR – 1 , Exemption under sec 10(15)(i) for Post office saving bank Interest of Rs.7000/-. ??
Kindly Clarify , Where to Fill in ITR – 1 , Exemption under sec 10(15)(i) for Post office saving bank Interest of Rs.7000/-. ??
sec 10(15)(i) exemption of Rs.7000/-post office saving bank. where it is to be shown in ITR-1? please tell
Read more at: https://taxguru.in/income-tax/section-1015-exemption-interest-bonds-debentures-securities.html#comment-122397674
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if exemption u/s 10() 15)(i) and deduction u/s 80 TTB can both be claimed
pl clarify- deuuction u/s10(15) on interest in saving a/c in post office up to rs 3500/- is applicable in addition to 80 TTB (rs 50000/-) to sr ctzn
Good article. I want to claim deduction u/s 10(15)i towards intt earned from post office saving account. My question : where, in ITR 1,to enter this deduction?
it sec 10(15)(i) exemption of Rs.7000/-post office saving bank. where it is to be shown? please tell
What is the maximum amount for exemption under it section 10(15)
Maximum amount exemption under section 10(15)
I have same query as of Sh, Mahendra. The interest income is shown in “Income from other sources” in AIS and added with other interest incomes (Savings bank, FD, Dividend). This has to be filled during ITR. Savings bank deduction upto 10K can be claimed in section 80 TTA, but which section has deduction of Infrastructure Bonds?
Interest accrued on NSS 1987 is exempt from tax under which section?
Is NSS 1987 a ”notified security”? If yes, under which section?
sir, pls guide me for interest of fd more than 10 lac how to save tax.
sir, I received interest as Rs 21240 on after maturity of a IDFC infrastructure long term bond. Is it taxable or not. Rs 1593 TDS is already deducted