Deduction for interest on fd having maturity period below 5 years

Section 80TTA provides a deduction of Rs 10,000 on interest income. This deduction is available to an Individual and HUF.

This deduction is allowed on interest earned –

• From a savings account with a bank
• From a savings account with a co-operative society carrying on the business of banking
• From a savings account with a post office

No deduction is allowed from the Interest earned on Fixed Deposit and it is taxable as per the Income Tax Slab Rates of the recipient individual.