Sec 194a & 80tta

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Mojeedra Satish S (Querist)
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01 August 2015 please explain Sec 194A & 80TTA of income tax act with refrence to below question.

Q 1 Mr X received saving bank interest of Rs
15000 .his TDS should Rs 1500 or Rs 500?

Q 2 If TDS Rs 1500 then can he claim refund
U/S 80TTA for Rs 1000?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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01 August 2015 TDS not applicable on Savings Bank Interest. You can claim deduction u/s 80TTA subject to a maximum of Rs 10000/-.

Remember deduction is for savings interest only and not for interest on fixed deposit. Interest on Fixed Deposit attract TDS u/s 194A.