10 December 2013
Sec 80tta was for interest earned on deposits from- (a)saving account, (b)Cooperative bank & (c)Post office saving scheme ...
Earlier int on saving a/c was taxable as per slab rate...but w.e.f. 1st Apr, 2012, an amendment has been brought in I.T.Act. acc to which a deduction of Rs. 10000 is allowed u/s 80tta..
The deduction is only available to individual & HUF and is over & above the deduction provided under 80C.
10 December 2013
Any Interest earned from Savings Bank Account or Fixed Deposit FD Account is TAXABLE. You need to show all the Interest from Saving & FD under head Income from Other Sources Then, you can claim deduction upto Rs 10000 under Section 80TTA for Savings Bank Account Interest. No TDS is applicable on Savings Bank Account Interest. However, TDS @10% is applicable for Interest on Fixed Deposit, if it exceeds Rs 10000. Read How to avoid TDS on Fixed Deposit
10 December 2013
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.
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