TAX EXEMPTION ON POSTAL A/C INTEREST CAPPED AT RS 3,500

Income tax will be levied on interest earned beyond Rs.3500 on a postal savings bank a/c. In a recent decision, the Central Board of direct taxes, the apex direct taxes body, withdrew the blanket exemption enjoyed hitherto by the scheme. The exemption will be available only on in interest earned
up to Rs 3500 in case of individual accounts and Rs 7000 in case of joint account from the current fiscal year itself.