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
Replies (15)
Quick Summary
This discussion clarifies the eligibility for tax deductions under Section 80TTA, which applies to interest earned from savings accounts with banks, co-operative societies, or post offices. It specifically excludes interest from fixed deposits and recurring deposits. For senior citizens, Section 80TTB offers a higher deduction of up to Rs 50,000 on interest from all types of deposits.
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.
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.
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.
Leave a Reply
Your are not logged in . Please login to post replies