“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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