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Eligibility of 80TTA

PSP psp (57 Points)

26 July 2020

respected sir
I have earned by the fixed deposits and saving account to amount of 1,20,000 .it's showing on ITR- 1. which option is best less tax.
if any possible , please suggest

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15 Replies

Nidhi (Chief Accountant) (3150 Points)
Replied 26 July 2020

Your query is not clear

You want to do investment or asking about deduction?
You asking about options, regards to whom?

Sandeep shetty (Sr Accountant) (292 Points)
Replied 26 July 2020

Hi,

You can Avail deduction up to 10000 under section 80TTA for Saving account interest

In case of Senior Citizen you can claim deduction under section 80TTB up to 50000 for the all interest from

A banking company (i.e. banks) to which the Banking Regulation Act applies (it also includes banks referred to in section 51); or
A co-operative society being engaged in carrying on banking business (it also includes a co-operative land development bank or a co-operative land mortgage bank); or
A post office as defined under section 2 (k) of the Indian Post Office Act.

1 Like

Maryam Hasan Meem (Student) (448 Points)
Replied 27 July 2020

Yes, I agree with SANDEEP SHETTY's reply as mentioned above

PSP psp (57 Points)
Replied 27 July 2020

Interest amount is 120000 .how much tax paid by me.
is anything possible less the tax?

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 27 July 2020

If you have any other income (other than this interest income ), than including that income, if your total income is less than 2,50,000/ than there is no tax payable.
And if You total income is up to 5,00,000/- in F.Y 2019-20 than also you are not required to pay any tax, as you will get rebate u/s 87A.

1 Like

Sandeep shetty (Sr Accountant) (292 Points)
Replied 27 July 2020

Hi,

is it a FD interest or SB interest ?

1 Like

PSP psp (57 Points)
Replied 27 July 2020

Fd and sb interest sir
totally net income 7 lakhs sir

Nidhi (Chief Accountant) (3150 Points)
Replied 17 September 2020

Can I take 80TTA benefits on RD interest

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 17 September 2020

No, you can not take 80TTA benifit on RD interest, it's available on for saving bank interest

Nidhi (Chief Accountant) (3150 Points)
Replied 17 September 2020

Than can I claim it under 80TTB

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 17 September 2020

Yes, it can be claim under 80TTB but benifit of 80TTB is only available for senior citizens, Not senior citizens can avail this Deduction.

1 Like

Nidhi (Chief Accountant) (3150 Points)
Replied 17 September 2020

Ok, is FD interest is also allowed under 80TTB to senior citizens person

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 17 September 2020

Section 80TTA provides a deduction of Rs 10,000 on interest income. This deduction is available to an Individual and HUF.

This deduction is allowed on interest earned –

From a savings account with a bank
From a savings account with a co-operative society carrying on the business of banking
From a savings account with a post office
This deduction is NOT allowed on interest earned on these deposits.

Interest from fixed deposits
Interest from recurring deposits
Any other time deposits
Section 80TTB (Only for senior citizen) provides a deduction of Rs 50,000 on interest of all kind of deposits.

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