An important amendment has been made by the Department of Posts regarding that the ceiling of maximum balance in a post office savings account.
Prior to this, the ceiling of maximum balance in the savings account was Rs. 1 lakh in single savings account and Rs.2 lakh in Joint savings account. Now it has been amended that there is no limit for retaining balance in single as well as joint savings account and also amended a depositor or depositors can deposit any amount into single and joint savings account.
In addition, maturity value of any savings instrument can be credited into single account of the depositor standing in the same post office irrespective of the balance in the account. Any cheque either issued by postmaster or any other authority irrespective of any amount can be credited into post office account irrespective of the balance in the account.
After the amendment made by the Postal Department, from the Financial year 2011-12, interest income of Rs.3500 in the case of single account and Rs.7000 in case of joint account will be exempted from Income Tax.
It is the duty of the depositor(s) to show the interest income earned from Post Office Savings Account(s) beyond the limit prescribed above in the Income Tax return and pay due Income Tax.
For more details pl. visit website of India Post