Turbo tax doe not add exception for MA state tax return,form 1section 5, subsection b,Interest income:100 exemption if filing single should be added. How to modify this ?

You need to tell TurboTax that the interest is from a MA bank. Go back to the federal Wages and Income section, where you entered the 1099-INT. Edit the 1099-INT, and continue to the "Tell us if any of these uncommon situations apply" screen. Click the "My state doesn't tax all of this interest" checkbox, and you will be able to select Massachusetts from the dropdown menu. This will trigger the MA bank interest exclusion.

Great. Thanks a lot. I’ll try making this change.

Jatin 

i tried that, but the MASS state tax did not pickup the exclusion. I had to delete the interest item at the federal level and enter it again selecting the MASS exclusion on the initial entry. Otherwise it would not switch to exclusion on the update of the interest item.