What does 80TTA mean?

Deduction under Section 80TTA Section 80TTA is titled as ‘Deduction in respect of interest on deposits in savings account’ in the Income Tax Act. Here are the salient features of this section: You can claim exemption on up to Rs. 10,000 received as interest on your savings account deposits.

How do I claim deduction under section 80TTA?

How to Claim Deduction Under Section 80TTA. First add your total interest income under the head ‘Income from Other Sources’ in your Return. The deduction is shown under section 80 Deductions under section 80TTA.

What is Section 80TTB?

Section 80TTB of the Income Tax Act, 1961 allows a resident senior citizen to claim a deduction against interest on the deposit. Section 80TTB is popular for claiming deduction against interest income on a fixed deposit and savings account balance.

What is 80TTA and 80TTB?

Relief under Section 80TTA is limited to savings accounts while Section 80TTB covers both savings account and fixed deposit accounts. Rs 10,000 under Section 80TTA vs Rs 50,000 under Section 80TTB. Relief under Section 80TTA available to individuals and HUF. Section 80TTB provides relief to only individuals.

When was 80TTA introduced?

2013
Section 80TTA was introduced in 2013 as a part of the Finance Bill passed that year, and it became applicable from the financial year 2012-13 onwards and still holds good.

Who can claim under 80TTA?

The following taxpayers can claim the deductions under section 80TTA of the Income Tax Act:

  • Individual taxpayers or Hindu Undivided Family (HUF)
  • Indian Residents.
  • Non-Resident Indians (NRIs) owning NRO savings accounts.
  • An entity with savings accounts at institutions like banks, post offices, or cooperative societies.

Is Section 80TTA applicable to FD interest?

Section 80TTA of the Income Tax Act 1961 provides deduction on the interest earned on your savings account with a bank, cooperative society or post office, up to Rs. 10,000/-. No deduction for FD interest is available u/s 80TTA.

How much amount of FD interest is tax free?

If your interest income from all FDs with a bank is less than Rs 40,000 in a year, the bank cannot deduct any TDS. The limit is Rs 50,000 in the case of a senior citizen aged 60 years and above. Prior to Budget 2019, the limit of TDS on interest income was Rs. 10,000.

What is 80TTA in income tax for senior citizens?

Section 80TTA provides a deduction on the interest earned only through savings accounts from a bank, cooperative bank or a post office. This interest is calculated from the total gross income of the individual taxpayer or a Hindu Undivided Family. Deductions of up to ₹10,000 are given under 80TTA.

What is the limit of 80TTA?

Rs.10,000
Rs. 10,000 deduction is allowed u/s 80TTA on the interest earned from savings account. If a person has multiple savings accounts with different banks, then the maximum deduction that can be claimed for all savings accounts put together is Rs. 10,000/-.

Why is 80TTA disabled?

Deduction under section 80TTA will be allowed only if you have shown income of Rs. 3500 as interest from saving bank a/c otherwise it will be disallowed. if you have shown income of Rs. 3500 as interest on saving bank a/c and still it is disallowed then you can file rectification in e filling portal of Income Tax.

How do I know if I have 80TTA?

The maximum deduction allowed under Section 80TTA is limited to Rs 10,000. If your interest income from the above sources is less than Rs 10,000, the entire interest income will be your deduction. But in case your interest income is more than Rs 10,000, your deduction will be limited to Rs 10,000.