Interest earned from Cumulative Time-Deposit-Exemption from income-tax-Clarification regarding-Section 10(15)(ii) of the Income-tax Act, 1961 - Income Tax - 410/1985

Interest earned from Cumulative Time-Deposit-Exemption from income-tax-Clarification regarding-Section 10(15)(ii) of the Income-tax Act, 1961 Circular No. 410 Dated 12/2/1985 Section 10(15)(ii) of the Income-tax Act, 1961, provides for exemption from tax in respect of interest on various specified securities, interest on deposits in Post Office Savings Banks and bonus in respect of deposits under the Post Office Savings Bank (Cumulative Time Deposits) Rules, 1959. 2. The Board have considered a reference on the eligibility of interest received under Post Office Savings Bank (Cumulative Time Deposits) Rules, 1959. Since the Post Office Savings (Cumulative Time Deposits) Rules, 1959, is only one kind of account under the Post Office Savings Accounts, such interest in respect of Post Office Savings Bank (Cumulative Time Deposits) Account is also exempt under section 10(15)(ii) of the Income-tax Act, 1961, to the extent to which the deposit does not exceed the maximum amount to be deposited or invested therein (in accordance with the regulations of the postal Bank). (Sd.) P. Saxena, Secretary, Central Board of Direct Taxes.