Exemption on Interest from Post office saving bank account restricted to Rs. 3500

0 comments Sunday, June 12, 2011
Exemption available on Interest from Post office Savings account has been restricted to Rs 3500 in case of Individual and Rs 7000 in case of Joint account holder. Earlier interest from post office savings account was fully exempt. 

Thus it means that after this notification interest from Post office saving account will be exempted to the extent of Rs. 3500 in case of Individual account holders and Rs 7000 in case of Joint account holders.

For example if interest of an individual from P.O S/a is Rs 4000 then only 500 will be taxable out of it and 3500 will be treated as exempted u/s 10(15)(i).
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Plumber gets notice of Rs. 6.5 crore from Income Tax-Dont let others use your bank accounts, think twice before signing any document

 Do you think twice before submitting your identity proof documents to your employers? Or carefully read all documents your employer makes you sign? If not, Shivnath Patel's story is sure to send shivers down your spine.

Patel, a plumber, received an Income Tax notice to explain a Rs six crore transaction from his bank account to purchase 69,000 shares of Alps BPO Services in 2002-03. Patel initially thought the notices were sent to him by mistake and returned them twice. He took it seriously only in December last year when he got a call from the I-T department. Officials questioned him about the financial transactions he had made as director of a realty firm.

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