Ms. Das, a resident aged 40 who has opted out of the section 202 regime, earns the following interest from a bank. Which interest can she deduct under section 153(2)(a) of the Income-tax Act, 2025?

Section 153(2)(a) covers interest on savings-account deposits with a bank, co-operative bank or post office, and expressly excludes time deposits, meaning deposits repayable after a fixed period. Fixed, recurring and term deposits are all time deposits; their interest qualifies only for a senior citizen under section 153(2)(b).