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
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.