Pls, tell me about the sec 80TTA interest upto 10,000.00 is exempt for only saving account interest or fixed deposit also. if only on saving account interest is under this section so, what will be the provision of fixed deposit interest .
24 January 2017
Yes, it is only on Savings Bank Account and not on Fixed Deposit.
Who can claim deduction under section 80TTA? Deduction u/s 80TTA is applicable to individual taxpayers and HUF only. This benefit is not available to a firm, an Association of Persons, a Body of Individuals, LLP or Company Assessee. Eligible savings account for claiming deduction under section 80TTA Saving accounts with any of following entities will qualify: • Bank or banking company; • Co-operative society engaged in carrying on the banking business and as specified. • Post office savings account. Section 80TTA deduction not available on FD Interest This deduction is NOT applicable to the interest you received on your FDs/time deposit or term deposit. Term deposit means a deposit received by the bank for a fixed period and can be withdrawn only after the expiry of the predefined fixed period. Maximum Deduction under section 80TTA • The deduction allowed is interest received on eligible saving accounts or Rs. 10,000 whichever is lower. • If interest earned is more than 10,000 then balance amount will be taxable as before i.e considered as Income from Sources and taxed as per your slab rate. • The deduction is in addition to deduction of Rs. 1.50 Lakh of section 80C of the Income tax Act -1961.
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