Deduction u/s 80tta
This query is : Resolved
CA Vibhor Kalamkar
(Querist)
18 July 2015
An assessee has following incomes:
Income from Salary - 5 Lakh
Income from Business - 2 Lakh (loss)
Income from other Sources - 1.5 Lakh (includes S.B. interest of Rs. 5000)
Loss from Business is set-off against Income from other sources and the balance Rs. 50,000 is carried forward.
Assessee has claimed deduction u/s 80C of Rs. 1Lakh and u/s 80TTA of Rs. 5,000.
The AO has disallowed the deduction u/s 80TTA on the ground that income from other sources has been set-off against Business Loss. Is his contention correct even though the GTI of the assessee is positive?
Income from Salary - 5 Lakh
Income from Business - 2 Lakh (loss)
Income from other Sources - 1.5 Lakh (includes S.B. interest of Rs. 5000)
Loss from Business is set-off against Income from other sources and the balance Rs. 50,000 is carried forward.
Assessee has claimed deduction u/s 80C of Rs. 1Lakh and u/s 80TTA of Rs. 5,000.
The AO has disallowed the deduction u/s 80TTA on the ground that income from other sources has been set-off against Business Loss. Is his contention correct even though the GTI of the assessee is positive?
18 July 2015
yes he is correct as it has been set off fully for rs 1.5 lakhs and so no deduction allowed.
CA Vibhor Kalamkar
(Querist)
18 July 2015
But nothing is written in the section that denies me from claiming deduction under 80TTA. Also the condition for claiming deduction under Chap. VI A is fulfilled i.e. the GTI is positive.
18 July 2015
AO is correct because GTI does not include interest income which is a pre-condition to claim 80TTA.
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CA Vibhor Kalamkar
(Querist)
27 July 2015
Thank you all for your answers
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