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Interest acrued on savings a/c

babugr (dgm) (509 Points)

10 February 2015

Dear experts

Kindly advise me on the following: i have 5 to 6 savings accounts whose interest clubbed exceeds 10000 . 2 of them do not add up to less than 4000. My query is does the the total interest earned on all a/c to be considered or individual to avail sec 80TTA?

Thanks

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5 Replies

CA Hardik Bunha (self) (2121 Points)
Replied 10 February 2015

yes whole interest take into consideration. u/s 80TTA available for whole interest (Saving bank A/c)

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CA Raj Doshi (Practising CA) (8924 Points)
Replied 11 February 2015

aggregate interest deduction Rs.10000.

Soham (Learning ) (534 Points)
Replied 11 February 2015

Aggregate of amount of interest Rs.10,000/-

Anil Kumar (Proprietor) (107 Points)
Replied 14 February 2015

80TTA Tax Rebate

Interest on savings account has income tax exemption up to Rs 10,000 from 01 April 2013. The new section 80TTA inserted by the Finance Act, 2012 makes this provision.

Eligibility for 80TTA

Individuals and HUFs who earn interest on their deposit in a savings account can claim tax exemption on such interest. Savings account can be with a bank, post office or co-operative society doing banking business. This deduction is not valid for time deposits like FD and RD.

If the savings account is held on behalf of a firm, association of persons or body of individuals this deduction is not applicable.

Maximum deduction limit under 80TTA

Up to Rs 10,000 as savings deposit interest can be claimed as exemption under section 80TTA. If the interest is lesser then that amount can be claimed.

How to get 80TTA deduction

Tax rebate under section 80TTA is over and above other chapter VI-A deductions like 80C, 80D etc. You can submit certificate from bank to your employer to get this deduction from salary TDS. If you don't do this, you can still claim it by putting the amount in cell for 80TTA under Chapter VI-A deductions in ITR form while filing tax returns.