80 tta

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 July 2013
One of my friend said that deduction u/s 80 TTA is available only for those assessee whose total income does not exceed Rs. 10,00,000/-; is it true?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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19 July 2013 No its not true at all. Available irrespective of level of Income.

For giving additional income tax deduction on Interest on Saving Bank Account new section 80TTA under Income Tax Act,1961 was introduced through Finance Act, 2012. This additional deduction u/s 80TTA is applicable only to individual and HUF on interest income from bank saving account .i.e this deduction is not applicable on interest received on time deposit/term deposit.

Eligible Assessee for section 80TTA: only Individual and HUF are elegible under this section, so a firm, an association of persons or a body of individuals will not get the benefit of this section.

Deduction Limit/ Maximum Deduction under Section 80TTA: Rs 10,000/- or actual interest receipt from saving bank account , which ever is lower. Example1. if person receive interest of Rs 15000/- from saving bank account then he has to pay tax on Rs 5000/- and Rs 10,000/- he can claim as deduction u/s 80TTA. Example2. if person receive interest of Rs 9000/- from saving bank account then he don’t have to pay tax on Rs 9000/- and Rs 9,000/- can be claimed as deduction u/s 80TTA.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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19 July 2013 Your friend is wrong and sanjay ji has explained correctly above.

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Querist : Anonymous

Querist : Anonymous (Querist)

19 July 2013 Thank you very much Sanjay Gupta & Tushar Sampat sir, thank you..

CA Pooja Agarwal

CA Pooja Agarwal (Expert)
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19 July 2013 he Finance Bill 2012 has proposed to insert a new section 80TTA in the Income Tax Act – 1961 which will provide deduction up to Rs. 10,000/- to an Individual/ HUF from Gross Total Income towards Interest on saving bank A/c (not being time deposits) maintained with a bank / society / post office. The deduction admissible shall be interest received or Rs. 10,000/- whichever is lower.
It is also proposed to provide that where the income referred to in this section is derived from any deposit in a savings account held by, or on behalf of, a firm, an association of persons or a body of individuals, no deduction shall be allowed under this section in respect of such income in computing the total income of any partner of the firm or any member of the association or any individual of the body.
The section is applicable with effect from April 01, 2013 and will apply from AY 2013-14 and onwards.

there is no such restriction as cited by you