Postal savings account: You can open a postal savings account under postal savings plans, but in contrast to a bank savings account, you can spend up to. save up ₹13,500 in one fiscal year. However, this is ₹13,500 can be ₹17,000 if the postal savings account is a joint account. According to tax and investment experts, this is an additional income tax benefit that postal savings account holders can claim when filing their income tax return (ITR).
Interest rate for the postal savings account
They said that if the interest rates on bank savings accounts go up about 3 percent, the postal savings rate is also 4 percent per year – about a third more return than bank savings accounts.
So if an investor has a low risk tolerance, it is recommended that they open a postal savings account and enjoy an additional interest rate of 33 percent and an additional income tax exemption limit of at least 35 percent ( ₹13,500 instead ₹10,000).
Speaking of income tax exemption for postal savings accounts; Mumbai-based tax and investment expert Balwant Jain said, “Interest on savings banks is currently exempt under Section 10 (15) (i) of the Income Tax Act, see Notice No. GSR 607 (E) dated June 9, 1989 this notice is amended accordingly that this interest is exempted from the postal savings account as follows: ₹3,500 for a single account, ₹7,000 with a joint account. “
Balwant Jain added that ₹A 3,500 tax exemption for a single postal savings account is an additional benefit that can be claimed in your ITR after you have used it ₹Deduction of 10,000 according to § 80 THG of the income tax law is possible.
Recommendation of the postal savings account holder for declaration ₹3,500 or ₹7,000 income tax exemption during ITR filing; SEBI-registered tax and investment expert Jitendra Solanki said: “The holder of a postal savings account must declare this income tax exemption under the” Exempt income “heading during ITR filing if the postal depositor has declared the income tax exemption for the interest earned on his post office savings account. “
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