Section 80tta

This query is : Resolved

Tushar Shah (Querist)
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28 January 2013 Sir, I have little confusion about the provision of new inserted section 80 TTA " deduction in respect of Interest on deposits in saving account

Whether this section privides direct deduction from the toal Income

For example if any salary income is Rs. 500000/- and assesse's interest income is RS. 10000/- then the same amount can be claimed as deduction from the salary income.

Sir I am talking abour deduction not exemption.

Please guide me

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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28 January 2013 It can not so directly be claimed from salary.
.
First you have to account for/compute the Interest Income under the head Income from Other sources and by adding income under all the five heads Gross Total Income will be arrived.
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Then as, you are deducting LIP, Med-iclaim Deductions under chapter VIA, interest on savings a/c or Rs. 10000/-, which ever is less , will likely be deducted.

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