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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0 responses to “Taxation of Interest Received From Post Office Savings Bank Account”

  1. R Shah says:

    Interest received from post office MIS on joint a/c, whether it is a income of 1st holder or 2nd holder ?

  2. Jhankhana says:

    What if the interest received in the month of April2011 – will it be exempt for the said month since the notification is applicable from June

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