Post Office Scheme Investors get additional tax benefits on the post office savings account. With this, it is beneficial compared to the savings accounts of the bank. This additional discount is available at the interest of savings account. Income tax rules take detailed information about this.

Rules of deduction on savings account
Under Section 80TTA of the Income Tax Act of 1961, a deduction can be claimed on interest up to Rs 10,000 from the savings account. This deduction is available on both bank and post office savings accounts. This means that if you get an interest of Rs 10,000 or less on the amount deposited in the savings account in a financial year, then there will be no tax on it.

Benefits of more cuts to senior citizens
Senior citizens get more tax exemption on the amount deposited in the bank. Under Section 80TTB of the Income Tax Act of 1961, senior citizens are allowed to claim a deduction on all savings and fixed deposits up to Rs 50,000. Senior citizens are taxpayers whose age is 60 years or older. The interest received from banks, cooperative institutions and post office accounts is eligible for this deduction.

Extra cut
Post office savings account is allowed additional deductions under Section 10 (15) (i). This deduction is in addition to Rs 10,000 available to general taxpayers under Section 80 TTA and Rs 50,000 available to senior citizens under Section 80 TTB. The special thing is that this deduction is also available in the new income tax system. In a financial year, the taxpayer can be deducted up to Rs 3,500 on the interest of the post office savings account on the same account. It is Rs 7,000 in terms of joint account.

Such will be more cut
Taxes say that if the taxpayers keep money in the post office savings account, they can claim discounts on interest received under Section 80TTA and Section 10 (15) (i). Thus, a taxpayer below 60 years of age can claim a total discount of up to Rs 13,500 on interest on post office savings account. It is important to keep in mind that this additional benefit is available only on the post office savings account.