Section 80tta

This query is : Resolved

KISHORE MAHAJAN (Querist)
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09 July 2013 Does section 80tta cover interest on Fixed Deposit or int on savings account like salary account or normal savings a/c?

Rupesh Jain

Rupesh Jain (Expert)
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09 July 2013 saving a/c intt cover not the FDR intt.

and salalry a/c also cover

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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09 July 2013 For giving additional income tax deduction on Interest on Saving Bank Account new section 80TTA under Income Tax Act,1961 was introduced through Finance Act, 2012. This additional deduction u/s 80TTA is applicable only to individual and HUF on interest income from bank saving account .i.e this deduction is not applicable on interest received on time deposit/term deposit.

Eligible Assessee for section 80TTA: only Individual and HUF are elegible under this section, so a firm, an association of persons or a body of individuals will not get the benefit of this section.

Deduction Limit/ Maximum Deduction under Section 80TTA: Rs 10,000/- or actual interest receipt from saving bank account , which ever is lower. Example1. if person receive interest of Rs 15000/- from saving bank account then he has to pay tax on Rs 5000/- and Rs 10,000/- he can claim as deduction u/s 80TTA. Example2. if person receive interest of Rs 9000/- from saving bank account then he don’t have to pay tax on Rs 9000/- and Rs 9,000/- can be claimed as deduction u/s 80TTA.

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