23 May 2014
u/s 80TTA deduction is allowed to an individual or a Hindu undivided family in respect of interest received on deposits (not being time deposits) in a savings account banks, cooperative banks and post office. The deduction is restricted to Rs 10,000. from this it is clear that interest from post office saving scheme is deductible up to Rs. 10,000. Moreover Sec. 10(15) deals with exemption of Interest, premium on redemption or other payments from notified securities, bonds, Capital investment bonds, Relief bonds etc.
uder section 10(15) you can claim Rs. 5000/- intt on post office saving bank a/c will exempt.u/s 10(15) is below regarding the saving a/c
"Public Account of the nature referred to in item (6) in the Table below rule 4 of the Post Office Savings Account Rules, 1981"
bal of after deducting Rs. 5000/- you can clim deduction u/s 80TTA up to rs. 10000/- . after that rs. 50000-5000-10000= 35000 will include in your income.
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