How can I save tax on interest income from bank and post office deposits?
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In order to give a big boost to save tax for middle class people, the Finance Minister announced hike in exemption limit from Rs 10000 to Rs 40000 on interest earned on bank and post office deposits.
Earlier banks used to levy 10% TDS (tax deducted at source) on interest income more than Rs 10000. Now with the proposed change in Interim budget no TDS will be levied upto Rs 40000 interest income which will be huge saving for middle class people.