Deduction u/s 80TTA

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This query is : Resolved

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Your employer is adding your savings bank account interest to your salary for TDS calculation, rather than allowing the Section 80TTA deduction upfront. While they state you can claim this deduction when filing your Income Tax Return (ITR), this might be a procedural issue. You can point them to Circular 4/2020 to request they consider the Section 80TTA deduction when calculating TDS on salary.

CA Parul Saxena

CA Parul Saxena (Querist)
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03 March 2020 I have Saving Bank Account Interest of Rs.15000. My organisation is adding this amount to my salary to compute TDS on salary and not considering deduction u/s 80TTA. Is it justified?
They are saying that we will deduct tds on this interest and you claim deduction u/s 80TTA in your ITR...

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 March 2020 Not justified but you can claim it in your ITR.

Eswar Reddy S

Eswar Reddy S (Expert)
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03 March 2020 It might be procedural issue within org -HR/Finance related -You can claim it while filing ITR and you may get the refund of the excess deduction of tax