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Deduction in respect of Interest on Deposits in Savings Accounts [Section 80-TTA]

 

Section 80TTA provides a deduction up to Rs. 10,000 in aggregate to an assessee (being an individual or a Hindu undivided family) in respect of any income by way of interest on deposits (not being time deposits) in a savings account with —

  1. a banking company;

  2. a co-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

  3. a post office.

The following Points should be noted –

  1. From the assessment year 2019-20, the above deduction is not available in the case of a senior citizen who is eligible to claim deduction under section 80TTB.

  2. Where the aforesaid income is derived from any deposit in a 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. 3,500 (in an individual account) and Rs. 7,000 (in a joint account) under section 10(15)(i) .

The cumulative impact of sections 10(15)(i) and 80TTA is as follows—

Interest on Post Office Savings Bank [Exemption under Section 10(15)(i)] Exemption up to Rs.3500 in 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)

Deduction up to Rs. 10,000

 

  1. For the purposes of this section, "time deposits" means the deposits repayable on expiry of fixed periods.

  2. This deduction is allowed whether the individual or HUF is resident or non-resident.

 

Deductions to be made in Computing Total Income [Sections 80A to 80U (Chapter VIA)]

Related Topics...Deductions from Gross Total Income

  1. DEDUCTIONS UNDER 'CHAPTER VI-A' IN RESPECT OF "PAYMENT & INVESTMENT" ARE ALLOWED FROM SECTION 80C TO 80GGC

    Section 80C Section 80CCC Section 80CCD
    Section 80CCG Section 80D Section 80DD
    Section 80DDB Section 80E Section 80EE
    Section 80G Section 80GG Section 80GGA
  2. DEDUCTIONS UNDER 'CHAPTER VI-A' IN RESPECT OF "INCOMES" ARE ALLOWED FROM SECTION 80-IA TO 80U

    Section 80-IA Section 80-IAB Section 80-IAC
    Section 80-IB Section 80-IBA Section 80-IC
    Section 80-ID Section 80-IE Section 80-JJA
    Section 80-JJAA Section 80-LA Section 80-P
    Section 80-PA Section 80-QQB Section 80-RRB
    Section 80-TTA Section 80-TTB Section 80-U
 

 

 
 
 
 
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