Tax on interest on savings a/c

Dear SURAJ!

You have rightly expressed that in recent budget, it was announced that interest on savings a/c will be exempt up to Rs. 10,000/- from FY 2012-13.

The Government has introduced a new Section 80TTA. The new section shall  come in to force with effect from 1^st day of April 2013. That means from the assessment year 2013-14.

It is also to be noted carefully that  this interest exemption is not extended to ‘time deposits’ (fixed deposits).