In the recent amendment it is said that interest on saving account is exempted upto 10000/- under section 80TTA. What's my question is if an assessee earns an interest income of 50000/- for the financial year then as per section 80TTA of the income tax act whether 10000/- Is exempted and 40000/- is taxable ? And the amount of 10000/- may include interest from different bank acounts? Please clarify this.
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About section 80tta
Replies (2)
10000 exempted and 40000 taxable
the amount of interest is from all banks not individual banks
1. yes 10000 exemption and on 40000 you need to pay tax if your income does not exceed basic exemption limit
2. 80TTA clearly states that interest received on Deposits ( not on timely deposits) is exempted upto 10000
so, there is no question of claiming exemption for interest earned from every bank.
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