Interest on Post Office Saving Scheme

Devendra (Chartered Accountant) (4775 Points)

20 June 2010

Whether TDS is liable to be deducted on the interest received on the Post Office saving scheme?

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Amir (Learner) (4016 Points)
Replied 20 June 2010

HI Devendra,

Interest earned under following schemes have been exempted from TDS but interest will remain taxable

Post Office Recurring Deposit Account

2. Post Office Time Deposit Account (1 year, 2 years, 3 years and 5 years)

3. Post Office Monthly Income Account

4. Kisan Vikas Patras

5. National Savings Certificates (VIII Issue)

6. Indira Vikas Patras

Notified schemes under section 194A(3)(vi):

(1) The Scheme of Post Office (Time Deposits) governed by the Post Office (Time Deposits) Rules, 1970.

(2) The Scheme of Post Office (Recurring Deposits) governed by the Post Office (Recurring Deposits) Rules, 1970—Notification : No. SO 2878, dated 1-9-1970.

(3) Investment Deposit Account Scheme, 1986—Notification : No. SO 4247, dated 11-12-1986.

Notified certificates :

Table

Sl. No.	Descripttion of Certificates
1.	National Savings Certificates (V Issue)
2.	National Savings Annuity Certificates
3.	National Savings Certificates (VI Issue)
4.	National Savings Certificates (VII Issue)
5.	Social Security Certificates