Savings account interest deduction is limited to eligible assessees, excludes time deposits, and bars claims through certain entities.

Deduction is available in respect of interest on deposits in a savings account, excluding time deposits, to an individual other than a senior citizen and to a Hindu undivided family, subject to the conditions specified for eligible deposits. The interest must arise from deposits with a banking company, a co-operative society engaged in banking, or a Post Office, and the deduction is confined to the interest component up to the prescribed maximum amount per assessee. No deduction is allowable where the deposit is held by, or on behalf of, a firm, an association of persons, or a body of individuals.

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