Section 80 TTA Deduction-Interest on Bank Savings Deposit
What is 80 TTA Deduction?
Section 80 TTA deduction was introduced from 1 st April, 2013 and will be in effect from AY 2013-14 onward. It has been introduced to provide deduction on the interest received on deposits in a savings account held with banks, cooperative societies and post office to an individual or a Hindu Undivided Family.
When is the Deduction Not Allowed?
The deduction is not allowed on interest earned on time deposits but it is allowed on the interest earned on fixed and recurring deposits.
Who are eligible to claim 80 TTA Deductions?
Only an individual or a Hindu Undivided Family (HUF) can claim the deduction u/s 80 TTA. Any association of persons, company, LLP, or a body of individuals is not eligible to claim the deduction under this section.
How is the Deduction allowed?
Particulars Up to AY 2012-13 For AY 2013-14 From AY 2014-15
Deduction under Section 80TTA No deduction No deduction upto 10K
Related Post: What to include under ‘Income from Other Sources
The deduction allowed under this section is allowed on the interest received on savings account or Rs. 10,000, whichever is lower. If the interest earned is more than Rs. 10,000, the amount above Rs. 10,000 will be taxable as per the tax slab of the taxpayer.