I just realised I have missed claiming an extra deduction which has been available since 2011 : ( Better late than never… so may be I can start using it from FY 2022-23 onwards in my ITR. Like me, many ppl could be unaware of the availability of this extra deduction.
In June 2011, the govt issued a notification as per which interest income up to Rs3,500 p.a earned from post office savings account is exempt from tax for single accounts and Rs7000 p.a for joint accounts. This exemption is over and above the deduction of Rs 10000 available under Section 80TTA and the Rs50000 deduction available under Section 80TTB for senior citizens.
Just wanted to reconfirm that this deduction is still available & also the process to claim it. It seems the process to claim it is different from that for Sec 80TTA/ Sec 80TTB.
Also while I intend to continue filing under old regime, there could be many who are moving on to the new regime… I hear that this extra deduction is available under new regime too. Can someone please re-confirm? This could be helpful for lots of people.
This deduction is not available as of now.
The limit of ₹10,000 u/s 80TTA includes the amount of interest from the Post office savings account as well. This deduction is only available under the old tax regime.
Looks like Quicko might’ve missed a small detail on this one! While we’re all about learning something new every day, here’s the lowdown: the extra deduction on interest income from Post Office savings accounts has always been in the game just waiting for us to claim it!
For those of you switching to the new tax regime, don’t worry, you’re still in the clear! This deduction now applies to both old and new regimes …not that it’s much but boond boond bane saagar
It’s like finding an extra fry at the bottom of the bag—surprise!
(15) (i) income by way of interest, premium on redemption or other payment on such securities, bonds, annuity certificates, savings certificates, other certificates issued by the Central Government and deposits as the Central Government may, by notification in the Official Gazette, specify in this behalf, subject to such conditions and limits as may be specified in the said notification ;
Thanks for sharing the long-lost gazette!! What started as a casual glance at a Mint article went on to an old gazette & turned into a full-blown rabbit hole of annexures & forgotten notifications.
whoa!! as per the earlier Gazette, NSC redemption used to be exempt!!! un(freaking)believable… whole amount it says (I am actually confused… because despite this ppl would shy away from disclosing … wonder why?) I have so many questions now!!
Gazette is silent on KVP (which still carries a reputation among old-timers for being a “safe stash” for cash) & IVP (IVP was especially infamous for being a bearer instrument, widely used for unaccounted cash flows and black money parking)… which means they were fully taxable? what fun!
the new (2011) Gazette says only Savings Bank a/c interest is exempt upto Rs3500!! what a killjoy!