Allowing of tax rebate on earning of bank interest
This query is : Open
Mahender Singh
(Querist)
20 July 2017
I have a saving bank account and receiving salary through bank I have opted mode balance in my account where if balance of my account exceeds ₹ 5000 than entire amount goes into STDR through mode balance and during the year 2017-18 I have received ₹ 159970 as bank interest and bank has deducted ₹16026 as income tax which is shown in 26AS also can I claimed interest rebate ₹ 10000 by filing of ITR
K Srinivas, CMA CS
(Expert)
22 July 2017
Good question.
Benefit of Rs.10,000 under Sec 80TTA is allowed only for savings accounts interest.
The amount that we earn as interest from short term deposits (Sweep out deposits) is treated as income from fixed deposits and not as income from savings account.
Therefore, no benefit can be claimed under 80TTA for the income you earned as interest from such STDR deposits
Benefit of Rs.10,000 under Sec 80TTA is allowed only for savings accounts interest.
The amount that we earn as interest from short term deposits (Sweep out deposits) is treated as income from fixed deposits and not as income from savings account.
Therefore, no benefit can be claimed under 80TTA for the income you earned as interest from such STDR deposits
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