Can a parent claim deduction under Section 80TTA in respect of Interest from Savings Bank Account of his / her minor child (over & above the amount of Rs. 1,500/- which is exempt under Section 10(32)), whose income has been clubbed with income of the parent under Section 64(1A)?
E.g., Master B (minor son of Mr. A) earns Rs. 5,000/- as Interest from Savings Bank Accounts, which gets clubbed with the income of Mr. A. Mr. A claims exemption of Rs. 1,500/- under Section 10(32) in respect of income of Master B. Balance Rs. 3,500/- is taxable in the hands of Mr. A as Income from Other Sources (Interest from Savings Bank Accounts). Can Mr. A claim deduction of this Rs. 3,500/- under Section 80TTA (since this Rs. 3,500/- is Interest from Savings Bank Account and subject, of course, to overall limit of Rs. 10,000/- prescribed under Section 80TTA) while filing his Return of Income?
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Deduction under Section 80TTA - Whether allowable in respect of Interest earned by a minor child
Replies (2)
Quick Summary
Yes the parent can definitely take deduction of such income under 80tta
There is no clarity if the same is allowable younger Sec 80TTA. I would advise not taking such a deduction as the law is vague and taking a benefit of doubt is not advisable.
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