80tta

This query is : Resolved

DHIREN (Querist)
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20 November 2014 SIR I WANT TO KNOW THAT AN INDIVIDUAL (RESIDENT) HAVING INTEREST INCOME ON FOREIGN BANK ACCOUNT WILL ALLOWED AS DEDUCTION U/S 80TTA.
AS I STUDIED THERE IS NO MENTION ABOUT INTEREST SHOULD BE ONLY FROM INDIAN BANK.
Please give your valuable answers

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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20 November 2014 Eligible savings account for claiming deduction
Saving accounts with any of following entities will qualify:

Bank or banking company;

If the above conditions are satisfied you can claim exemption.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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20 November 2014 Section 80TTA provides deduction in respect of interest income earned from a deposit account (not being a time deposit account) held with a bank to which the Banking Regulation Act applies.

Banking Regulation Act applies to a foreign bank which is operating in India.

So intee=rest earned on an account held with the Indian branch of a foreign bank will be eligible for deduction u/s 80TTA.

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DHIREN

DHIREN (Querist)
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20 November 2014 IT MEANS IF I HAVE AN ACCOUNT IN FOREIGN ( NOT BEING INDIAN BRANCH) WOULD NOT BE ELIGIBLE FOR 80TTA

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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20 November 2014 Banking Regulation Act is NOT applicable to a foreign bank not operating in India.

Accordingly deduction u/s 80TTA is not available for account held with such bank.

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