Interest income from post office

[Guest]

Hi All, I will be greatful if reply my query immediately. My Client has opened an account with Post Office. Account is in the name of 'POST OFFICE TERM DEPOSIT'. WHETHER INTEREST INCOME RECEIVED ON THAT DEPOSIT IS EXEMPTED UNDER THE INCOME TAX ACT, IF YES THEN PLEASE GIVE ME THE SECTION REFERENCE. THANKS IN ADVANCE

AI Summary

Interest Income from Post Office Term Deposit Not Tax Exempt; Deduction Available Under Section 80C for 5-Year Terms. A query was raised regarding the tax exemption status of interest income from a Post Office Term Deposit. The inquirer asked if such interest income is exempt under the Income Tax Act and requested a section reference if applicable. The response clarified that there is no tax exemption for interest income from a Post Office Term Deposit. However, it was noted that the deposit qualifies for deduction under Section 80C if it is a 5-year term deposit, allowing it to be deducted from the gross total income.