A K Jain (Service) (160 Points)
20 March 2012As per new budget proposal, there will not be any income tax for interest income upto Rs 10000 in a saving account (under new section 80TTA). It seems that this will be applicable for interest income earned from saving account & not on interest earned over FDs ? May please clarify/confirm.
CA Kiran Sutrave
(CA)
(428 Points)
Replied 20 March 2012
Interest earned only on Savings Account is exempt to the extent of Rs. 10,000/- as per Section 80TTA.
Interest income earned on Fixed Deposit is taxable and one cannot claim the benefit available under Section 80TTA.
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