Interest income from post office, Income Tax

[CA. PARVEEN MAKHIJA]

Hi All, I will be greatful if reply my query immediately. My Client has opened an account with Post Office. Account is in the name of "POST OFFICE TERM DEPOSIT". WHETHER INTEREST INCOME RECEIVED ON THAT DEPOSIT IS EXEMPTED UNDER THE INCOME TAX ACT, IF YES THEN PLEASE GIVE ME THE SECTION REFERENCE. THANKS IN ADVANCE

Posts / Replies

[Rama Krishana]

There is no such exemption. However, post office term deposit is eligible for 80C part of investment allowed to be deducted from the gross total income of the assessee. Moreover, the deposit should be 5 year time deposit for the purpose of section 80C.