Is it double benefit of interest

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 May 2013 is it double benefit (red colour)

Q.. Mr .X - salary income-530000 , interest income from post office-15000. calculate total income of Mr. X

Ans.-income under the head salary
salary income= 530000

income under the head other source
interest income= 15000
exempt u/s 10(15)=15000 = nil
gross total income= 530000
deduction under chapter- 6(80c-80u) 80TTA-interest income from post office= 10000
total income = 520000

CA AVINASH AGARWAL

CA AVINASH AGARWAL (Expert)
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19 May 2013 UNDER SECTION 80 TTA DEDUCTION WILL BE AVAILABLE ON SAVING ACCOUNT .AND INCOME EXEMPT under section 10(15) will not be eligible for 80 TTA.

CA AVINASH AGARWAL

CA AVINASH AGARWAL (Expert)
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19 May 2013 UNDER SECTION 80 TTA DEDUCTION WILL BE AVAILABLE ON SAVING ACCOUNT .AND INCOME EXEMPT under section 10(15) will not be eligible for 80 TTA.

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Guest (Expert)

20 May 2013 Your view is wrong in case of Section 80 TTA deduction. The deduction will be applicable only if the interest income is included in the Gross total Income(i.e. the income before deduction) As you mentioned the interest income is already exempt, no 80 TTA can be claimed for such interest as it is never part of gross total income.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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05 July 2013 A new deduction in the income tax has been introduced in this budget, interest on saving account deduction. Under section 80TTA of income tax act, the deduction is allowed on saving account interest up to 10000 per annum. This deduction is available to individual and HUF. This deduction is available to interest on saving account and not to time deposit. The saving account may be with any of the three mentioned below.

1- Any bank or banking company
2- Co-operative society which is in the business of banking.
3- Post office.

This deduction is for individual and HUF and not for partnership, firms or company. For these kinds of entity no deduction is allowed under section 80TTA.

This deduction is available for the assessee from 1 April 2013.
Tags-interest on saving account deduction,deduction on interest on saving account,section 80tta of income tax,section 80tta,section 80tta of income tax act,80tta section deduction

Further this deduction cannot be availed if the interest is from sweep account connected with the Savings Account.