Deductions under section 80c and 80tta

Agree with Abhay Gupta

Interest received on investments made u/s 80C may be treated as "Income form Other Sources". Deduction u/s 80TTA (as explained by CA Abhay Ji) is available against interest on saving bank account only (and not interest on investments made u/s 80C) the maximum limit of which is currently Rs. 10000/- only. And thus, 80C & 80TTA are not inter-linked.

80TTA only from saving accounts regular interest

Suppose the interest received from the investment made in a bank covered under 80C is directly credited to the savings account of the individual in the same bank as per standing instruction, whether 80TTA applies?

Sivapriya,

If the amt is credited in bank then it has no link as such of 80C and hence deduction on interest on Saving bank is eligible for Deduction u/s 80TTA even if it was recd from investment from 80C like LIC on Maturity.

80TTA is for interest which is received on deposits in which term is not decided whether deposits with banks or post office.

80c contains only such type of deposits in which term is dicided at the time of creation of deposits 

so there is no deposits which was invested as per terms of sec 80c on which interest in allowed under sec 80TTA.

Kindly solve the example:

An investment of Rs.200000 (e.g deposit in bank) made which is covered under 80C by Mr.A(mentioned as first name) & Mrs.A as joint holders.

Mr A's GTI is Rs.600000 and that of Mrs.A is Rs.50000. Mrs.A has submitted form 15G with the bank. Both are having PAN.

Deduction will be available to Mr.A being the first mentioned person. What is the taxability of the interest receipt with respect to TDS, if the interest is credited to the account of

1. Mr.A

2.Mrs.A

As per my knowledge, the interest recd. in the bank account can be taken as income of Mr. A as deduction is claimed for Mr. A irrespective of receipt either by  Mr. A or Mrs. A.