80tta
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
26 June 2013
is this deduction applicable to an individual who carries a business, and shows his business expenses in his individual return of income tax, if not under what situations this deduction is applicable
Rupesh Jain
(Expert)
26 June 2013
U/S 80TTA FOR SAVING BANK INTT DEDUCTION UP TO RS. 10000/-
NOT ON OTHER INTT.
LIKE RECD FROM PARTNER SHIP FIRM, FD INTT.
NOT ON OTHER INTT.
LIKE RECD FROM PARTNER SHIP FIRM, FD INTT.
26 June 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.
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.
CA PARAS BAFNA
(Expert)
26 June 2013
In case of an Individual, Section 80TTA is applicable in case of Savings Bank Interest.
.
Such interest has to be shown separately under the head Income From Other Sources.
.
Whereas Business Income is shown under the head PGBP.
.
So, a businessman can also enjoy deduction U/s 80TTA to the extent of amount of savings bank interest or Rs. 10000/- whichever is lower.
.
.
Such interest has to be shown separately under the head Income From Other Sources.
.
Whereas Business Income is shown under the head PGBP.
.
So, a businessman can also enjoy deduction U/s 80TTA to the extent of amount of savings bank interest or Rs. 10000/- whichever is lower.
.
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