Whoever said wishes don’t come true hasn’t explored our offers!
  • Rs 10,000 Income Tax Exemption on Saving Bank Interest – Sec 80TTA

    Deductions under Section 80TTA apply only to individuals or Hindu Undivided Families. These deductions are applied with regards to the interest they receive on any deposits they hold in savings accounts with banks, co-operative societies or banks and post office. However, the deduction under Section 80TTA does not apply to firms, Association of Persons (AOP) or Body of Individuals (BOI) and is not applicable on Fixed Deposits or Recurring Deposits. Applicants can only claim deduction up to Rs 10,000 or the actual interest, depending on whichever is lower.

    Eligibility for claiming Deduction under Section 80TTA:

    The following entities can claim deductions under section 80TTA

    Both entities mentioned above can claim deductions under Section 80TTA provided that they hold savings accounts with the following:

    • Banks
    • Co-operative banks or a co-operative society carrying on the business of banking
    • Post Office

    Who is ineligible to claim Deduction under Section 80TTA:

    The following entities are ineligible to claim deductions under section 80TTA

    • Firms
    • Association of Persons
    • Body of Individuals
    • Company Assessees

    Features of Deductions under Section 80TTA:

    • Deduction can be claimed only up to Rs 10,000 on the interest earned on the savings bank account. However, tax will have to be paid on any amount over and above Rs 10,000
    • Deduction under Section 80TTA is applicable over and above deduction of Rs 1.5 lakh under Section 80C
    • Deduction under Section 80TTA is applicable on Rs 10,000 on the combined saving bank accounts interest

    When is Deduction under Section 80TTA not Applicable?

    Deduction under Section 80TTA is not applicable on the following:

    • Interest received on Fixed Deposits
    • Interest received on Time Deposits
    • Interest received on Term Deposits

    How to claim Deduction under Section 80TTA?

    Taxpayers can claim deductions under Section 80TTA as per the following procedure:

    • When filing returns, add total interest income under the head ‘income from other sources’
    • Claim deduction under Section 80TTA on Rs 10,000 if interest received is more than Rs 10,000. If less than Rs 10,000, then tax need not be paid since the entire amount is deductible under Section 80TTA.
    TAX
    Forms:
  • reTH65gcmBgCJ7k - pingdom check string.
    reTH65gcmBgCJ7k - pingdom check string.
    This Page is BLOCKED as it is using Iframes.