Income Tax Deduction U/s 80TTA

Share
Section 80TTA has been inserted with effect from the assessment year 2013-14. It provides a deduction up to Rs. 10000 in aggregate to an assessee (being an individual or a HUF) in respect of any income by way of interest on deposits (not being time deposits) in a savings account with-
A. a banking company
B. aco-operative society engaged in carrying on the business of banking (including a co-operative land mortgage bank or a co-operative land development bank); or
c. a post office
However, where the aforesaid income is derived from any deposit in savings account held by, or on behalf of a firm, an association of persons or a body of individuals, no deduction shall be allowed in respect of such income in computing the total income of any partner of the firm or any member of the association or body.
Post office savings bank interest exemption under section 10(15)(i) – Post office savings bank interest is exempt up to Rs. 3500 (in an individual account) and Rs. 7000 (in a joint account) under section 10(15)(i) by virtue of Notification No. 32/2011, dated June 3rd 2011 read with Notification No. GSR 607, dated June 9, 1989. The cumulative impact of section 10(15)(i) and 80TTA as follows:

Up
to the Asessment year 2011-12 Rs.
For
the Assessment year 2012-13 Rs.
From
the Assessment Year 2013-14 Rs.
Interest
on Post Office saving Bank (exemption under section 10(15)(i)
Full
Exemption, nothing is taxable
Exemption
up to Rs. 3500 in a single account and Rs. 7000 in a joint account
Exemption
up to Rs. 3500 in a single account and Rs. 7000 in a joint account
Interest
on savings account with a bank, co-operative bank and Post office
(deduction under section 80TTA)
No
deduction
No
deduction
Deduction
up to Rs. 10000
RECOMMENDED READ  Cheques / Demand Draft time limit needs to present in 3 months

Leave a Reply

Written by

Optimization WordPress Plugins & Solutions by W3 EDGE
%d bloggers like this: