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.