Section 153 of the Income-tax Act, 2025 allows an individual who is not a senior citizen, or a Hindu…

The correct choice is: “Savings accounts with a bank, co-operative bank or post office”

Section 153 of the Income-tax Act, 2025 (formerly ss.80TTA and 80TTB of the Income-tax Act, 1961) allows a deduction from gross total income for interest on deposits with a banking company, a co-operative society engaged in the business of banking, or a post office. For an individual who is not a senior citizen, and for a Hindu undivided family, s.153(2)(a) allows the whole of the interest up to ₹10,000 on deposits in a savings account, excluding time deposits. Section 153(5) defines time deposits as deposits repayable on the expiry of fixed periods, so interest on fixed deposits and recurring deposits does not qualify for these assessees; time-deposit interest counts only for a senior citizen, whose limit under s.153(2)(b) is ₹50,000 on deposits in any account. Interest on company debentures is not interest on a deposit with a bank, co-operative bank or post office at all.