80tta

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 August 2014 Dear Sir,

Can deduction of 80TTA is allowed even when there is loss under the head of Income from Other Sources ?

CA PRIYUL SHAH

CA PRIYUL SHAH (Expert)
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05 August 2014 Yes, it is allowed irrespective of loss under Income From Other Sources

CA UMESH DULAL

CA UMESH DULAL (Expert)
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05 August 2014 It is allowed from gross total income so you can

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Querist : Anonymous

Querist : Anonymous (Querist)

05 August 2014 Dear Sir,

Thanx for the reply but I got an Income Tax Demand u/s 143(1) of disallowance of sec. 80TTA as my Other Sources Losses were set off against Business Income and they are not giving the deduction of sec. 80TTA

CA UMESH DULAL

CA UMESH DULAL (Expert)
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05 August 2014 80TTA is not loss it is deduction. If you have earned interest from saving account, you will be eligible.

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Querist : Anonymous

Querist : Anonymous (Querist)

05 August 2014 Dear Sir,

Then can I Set Off the Income of Saving Interest against Business Income and then can claim Deduction u/s sec. 80TTA

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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05 August 2014 Don't set off income of saving interest up to Rs.10,000. and claim it as deduction under section 80TTA. Carry forward other losses.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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06 August 2014
the intra-head losses will automatically be set-off.

while you may trying claiming 80TTA deduction on the same, there are good chances that it will be disallowed in 143(1) intimation itself.

The reason for the same is because set-off and carried forward of losses (chapter VI) precede deduction under chapter VI-A.

Umesh - Gross Total Income is arrived at after adjusting for losses - for intra-head, inter-head, and brought forward losses.

However, I do agree that ITR form validates even when you are claiming intra-head adjustment as well as deduction simultaneously.

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CA UMESH DULAL

CA UMESH DULAL (Expert)
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06 August 2014 80TTA comes to play after calculating gross total income. If you have 80TTA income after adjusting intra/inter head loss, you will allow to claim.

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