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Sec 80tta applicability (Income Tax)

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This query is : Resolved

( Querist )
08 July 2013

interest earned from savings accounts is exempt upto 10000
The section is applicable with effect from April 01, 2013 and will apply from AY 2013-14 and onwards.
but this is ambiguous

So is interest earned in F.Y 12-13(AY 13-14) exempt,CS,CAFinal Tushar Sampat

( Expert )
08 July 2013

yes int is exempt provided other condition of Sec 80TTA is fullfilled.

CMA. CS. Sanjay Gupta

( Expert )
08 July 2013

For giving additional income tax deduction on Interest on Saving Bank Account new section 80TTA under Income Tax Act,1961 was introduced through Finance Act, 2012. This additional deduction u/s 80TTA is applicable only to individual and HUF on interest income from bank saving account .i.e this deduction is not applicable on interest received on time deposit/term deposit.

Eligible Assessee for section 80TTA: only Individual and HUF are elegible under this section, so a firm, an association of persons or a body of individuals will not get the benefit of this section.

Deduction Limit/ Maximum Deduction under Section 80TTA: Rs 10,000/- or actual interest receipt from saving bank account , which ever is lower. Example1. if person receive interest of Rs 15000/- from saving bank account then he has to pay tax on Rs 5000/- and Rs 10,000/- he can claim as deduction u/s 80TTA. Example2. if person receive interest of Rs 9000/- from saving bank account then he don’t have to pay tax on Rs 9000/- and Rs 9,000/- can be claimed as deduction u/s 80TTA.



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