Removal of ceiling of maximum balance in a post office savings account
Regarding the ceiling of maximum balance has removed in a post office savings account, the Department of Posts issued a recent notification to amend the earlier notification with some instructions on 27.09.2011.
As per the office order, ceiling of Rs.1 lac in single savings account and Rs.2 lac in joint savings account has now amended Rule-4 of the Post Office Savings Account Rules, 1981, there will be no limit for retaining balance in single as well as joint savings account from 1.10.2011 and also a depositor or depositor(s) can deposit any amount into single as well as joint savings account.
Moreover the maturity value of any savings instrument can be credited into savings account of the depositor standing in the same post office irrespective of the balance in the account. Any cheque either issued by Postmaster or any authority irrespective of any amount can be credited into post office savings account irrespective of the balance in the account.
And one more important aspects of the interest earned in post office savings account, from the financial year 2011-12, shall be limited to Rs.3500 in a year in case of a single post office savings account and up to Rs.7000 in case of joint account.
The order also said that it is the duty of the depositors to show the interest income earned from Post Office Savings Accounts beyond the limit prescribed above in the Income Tax return and pay due Income Tax.
For more details above the subject, pl.visit the official website of Indian Department of Posts