Post Office savings accounts to be taxed from current fiscal

“Taxpayers who 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 up to Rs3,500 in case of single accounts and Rs7,000 in case of joint accounts, is exempted,” a senior I-T official said

New Delhi: 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 Rs3,500 (in case of individual accounts) and Rs7,000 (in case of joint accounts) will be taxable from the running fiscal, reports PTI.

The CBDT—which is the administrative authority of the Income Tax (I-T) 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 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 up to Rs3,500, in case of single accounts and Rs7,000 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 rate for Post Office savings deposits is 3.5% per annum. The minimum investment limit in this scheme is Rs50 while the maximum limit is Rs1 lakh for an individual account and Rs2 lakh in case of a joint account.

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COMMENTS

krishnan

5 years ago

whethr interest on investment in post office monthly icome is also taxable

Hazare says govt ''playing tricks'' on Lokpal Bill; threatens agitation

Leader of anti-corruption movement questions rationale of a joint committee to draft bill if government wants to send two separate drafts to the Cabinet

New Delhi: With the talks on the Lokpal Bill deadlocked, Anna Hazare today alleged that the government was "playing tricks" and he threatened to resort to agitation again if a strong anti-corruption bill was not passed.

Mr Hazare also questioned the rationale behind sending two versions of the Lokpal Bill to the Cabinet for consideration, PTI reports.

"If they bring a weak bill, certainly we will have to go back to agitation. It appears that the government is going back on its promises. We may have to revive our Jantar Mantar agitation which was stopped for sometime," he said.

A day after the sixth meeting of the joint drafting committee on the Lokpal Bill, Mr Hazare said he did not understand the need for setting up a joint committee to draft the bill if it was to send two drafts to the Cabinet for consideration.

"They (government) have wasted our time. We had our draft ready earlier and they too had theirs. Then why did they not bring this to the Cabinet earlier. The government is playing tricks," Mr Hazare alleged.

After the disagreements between the government and civil society increased yesterday, Union minister Kapil Sibal said that two versions of the Bill would be put to the Cabinet for its consideration if there unanimity could not be achieved.

Mr Hazare alleged that the government did not have the "will" to enact a strong Lokpal Bill which has provisions to send corrupt people to jail. "What is the point of according sanction to a weak bill? If a weak bill is passed, then we will have to protest. If it is a weak bill, then there is no gain for the people," he said.

"Bringing the Lokpal Bill is not on the government's mind. We are not getting any personal benefit from this. What is the point of having such a draft that cannot help India get rid of corruption," he said.

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COMMENTS

Shruti

5 years ago

However, these are merely the facts of reality, not what Manish Tiwari and
Pranab Mukherjee would like to believe. They, like their other colleagues
in the government, are obviously passing through hallucinations and
illusions. In Anna Hazare, they are seeing a heavily armed warrior - 'a
tyrant' - at the head of an angry army of India's masses charging
ferociously straight into them. The scenario reminds us of Wordsworth's
adolescent thief who was fleeing with his stolen boat but felt the hilltop
behind was chasing him so menacingly that the farther he roved the bigger
the shadow loomed over him. The more the government tries to shoo away the
Lokpal and anti-corruption uproar, the more vigorous becomes the public
outcry against corruption. Indian politicians could not have had more
decent and loving enemies than Anna Hazare and his candle wielding masses or
Baba Ramdev with his devotees practising abstinence and yoga. Arrogant
governments in West Asia and North Africa are facing more violent and
destructive uprisings. We have a choice to change peacefully.

While anxiety of those in power is understandable, they cannot avoid the
problem by facing in the other direction. The tide is unstoppable. The
people deserve and demand an effective Lokpal to rein in rampant corruption
and they shall have it either with your cooperation or the tumult will crush
authoritarian arrogance and install people's choice

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