Section 80 tta - exemption on saving a/c interest

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 May 2016 Is there any limitation for getting 10,000/- deduction / exemption from total interest on saving account. if some one is having total saving account interest Rs. 30,000 to 40,000 whether he will have to pay IT on total less 10,000/- ?

CA Pracheta Shirish Deshmukh

CA Pracheta Shirish Deshmukh (Expert)
Follow

10 May 2016 Section 80TTA is introduced with effect from April 01, 2013 and will apply from AY 2013-14 and onwards. Section is introduced to provide deduction to an individual or a Hindu undivided family in respect of interest received on deposits (not being time deposits) in a savings account held with banks, cooperative banks and post office. The deduction is restricted to Rs 10,000 or actual interest whichever is lower. Hence the Income Tax will be payable on Amount less Rs. 10000

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
Follow

10 May 2016 U/s 80TTA you are eligible to claim deduction upto Rs.10000/-over and above is taxable Under other sources.

Abhishek Ranjan Singh

Abhishek Ranjan Singh (Expert)
Follow

11 May 2016 Section 80TTA is introduced with effect from April 01, 2013 and will apply from AY 2013-14 and onwards. Section is introduced to provide deduction to an individual or a Hindu undivided family in respect of interest received on deposits (not being time deposits) in a savings account held with banks, cooperative banks and post office. The deduction is restricted to Rs 10,000 or actual interest whichever is lower.

In this case tax will be calculate on Total interest minus (10000/- or actual interest which ever is lower)

Abhishek Ranjan Singh
ARS Solutions
www.arssolutions.co.in
+919022838615

Note : If you find our reply useful. Please Score us by clicking on "THANK USER"

Message likes : 4 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now