A tax of Rs 3,500 can be saved on interest earned on post office savings account under section 10(15)(i). This limit is for a single account. If two people together have opened a joint savings account, then this amount will double i.e. 7,000 rupees.
If you earn, you also have the right to save tax. For this, you need to know about the rules through which tax can be saved. There are many provisions in the Income Tax section, which can be used to save a significant amount. In these, you must have known about section 80TTA and section 80TTB. Both these sections were launched by the government in 2012-13. In this section, taxpayers are given an exemption that they can easily save tax on their deposit account. This tax saving is on the total income.
Under section 80TTA, a taxpayer can save tax up to Rs 10,000 on interest earned from a savings bank account. This savings account can be in a government bank, co-operative bank or post office. For this the taxpayer has to claim deduction. Apart from this, there are some other rules in the section of income tax, with the help of which additional exemption in income tax can be taken. If you have an account with the post office, then tax exemption can be taken on its interest.
How to save tax
Under section 10(15)(i) of Income Tax, tax of Rs 3,500 can be saved on interest earned on post office savings account. This limit is for a single account. If two people together have opened a joint savings account, then this amount will double i.e. 7,000 rupees. In this way, if there is a savings account in the post office under section 80TTA and 80TTB, then there is a chance to save Rs 10,000 and under section 10(15)(i) an additional 7 thousand rupees. In this way, the taxpayer gets a chance to save a total of Rs 17,000. This opportunity is also available in the new tax rules. Information about this has been given in the government notification issued on June 3, 2011.
How to get discount
For this, the taxpayer deducts the interest received from the post office savings account from the total income and this work is done by keeping it in the head ‘Income tax from other sources’. The full taxable income is calculated after deducting the interest amount. However, interest earned on savings deposit account under section 80TTA and section 80TTB is added to ‘Income from other sources’ and then the total income is calculated. After this deduction of section 80TTA or 80TTB is taken.
What does the rule say
If you earn Rs 4,500 as interest from Post Office Savings Account and Rs 9,000 from deposits in other banks, then the total interest income will be Rs 13,500. Thus interest earned from savings account with post office can claim exemption under section 10(15)(i) up to Rs.3,500, and for the remaining Rs.10,000, you can claim exemption under 80TTA again . You will not have to pay any tax on interest income of Rs 13,500. Also, if you have opened a joint savings account with your wife at the post office, then both of you can claim tax exemption of Rs 3,500 separately.
