IS post office savings tax free completely?

Question

I heard that the PO savings is complely tax free..is this true..or is Bank savings tax free?can somone list some good tax free schemes in both banks and PO plz thx

Answer 1

No, PO saving interest or bank saving interest is not tax free.

You can only get deduction from your income if you invest in some approved savings. Read Investments based Deductions from the Income: Section 80C, 80CCC, 80CCD, 80CCE:

http://mytaxes.in/index.php?topic=24.0

Answer 2

The interest earned on Saving Bank account with any Post Office is absolutely taxfree.

Answer 3

I do not think Banks provicd any tax free schemes

But i am sure post off offers many of such schemes..

NSC, KVP, are some of it,

But if you want good returns you can go fro LIC they also have many tax free schemes.

Answer 4

you may get tax benefit on some long-term savings plans ... that are helpful in national interest... for detailed information visit nearest post office and bank...

Answer 5

no your infromation is in correct. Only the interest given to you in your savings account is tax free.  for all other sechemes interest earned is taxable.