80tta deduction

Nobody enjoys paying taxes but it is a necessary part of being a good citizen and is everybody’s responsibility. But what if we told you that you can now enjoy paying taxes? This sounds too good to be true. However, we are here to tell you that it’s not. You can get several deductions on your taxes by becoming more familiar with Section 80TTA of the Income Tax Act. And we’ll help you with just that today! What is Section 80TTA of the Income Tax Act? Before you can learn how to avail of Section 80TTA deductions, it is important to learn about Section 80TTA of the Income Tax Act. This section provides a deduction for interest income. The deduction is available with a few limitations and restrictions. It should be noted that when a taxpayer’s gross total income includes any income that is done through interest on deposits, then such type of income is classified as being tax-free. To be eligible for this deduction, the taxpayer must be an individual taxpayer, a Hindu Undivided Family (HUF), or a member of a Hindu Undivided Family. Beyond this, the income that is being done through interest from a deposit must be from a savings account that fulfils the conditions that are mentioned below. • A banking company that works according to the Banking Regulation Act, 1949 (10 of 1949) • A cooperative society engaged in carrying on the business of banking • A co-operative land mortgage bank • A co-operative land development bank • A post office under the Indian Post Office Act, 1898 It ...

Table of Contents • • • • • • • • • • • What is Section 80TTA of the Income Tax Act? Section What is Section 80TTA Deduction? 80TTA provides for ‘deduction in respect of interest on deposits in savings account’ in the income tax law. 80TTA deduction can be claimed on any number of savings held in banks, post office or cooperative societies, for an amount up to Rs 10,000. What Is the Maximum Deduction Acceptable Under Section 80TTA? In case your savings accounts interests are more than Rs 10,000 in a financial year, the excess interest is added to your total income and income tax is charged accordingly. See also: A guide to checking Applicability of Section 80TTA Section 80TTA applies only on savings accounts. 80TTA does not cover term deposits, fixed deposits, or recurring deposits. 80TTA deduction is allowed on interest earned on the following savings accounts: • • Savings account with a co-operative society • Savings account with a post office See also:Everything you need to know about Cooperative Housing Society Who can claim deductions under 80TTA? Individuals and Hindu Undivided Families can claim deductions on savings interest under Section 80TTA. See also: All about Can NRIs claim 80TTA deductions? Residents, as well as non-resident Indians, can claim 80TTA deductions. How to claim 80TTA deduction? To claim deduction under Section 80TTA, calculate the total interest income in the ITR form under the head ‘income from other sources’. 80TTA deduction will be shown unde...

An individual can claim for deduction on interest income of up to Rs 10,000 per annum under this section. It is available for both individuals as well as Hindu Undivided Family. The deduction is available on the interest amount earned: • From a savings account held in a bank • From savings account held in a post office • From a savings account held with a co-operative society which carries out banking business Please Note: Income earned from fixed deposits or recurring deposits or time deposits held with any banks or financial institutions or post office is not eligible for deduction under this section. Exceptions under Section 80TTA Deductions under Section 80TTA will not be allowed for the interest earned amount on fixed deposits and it is taxable as per the normal slab rates as indicated by the Union Budget. The tax deducted at source will also be applicable if the interest earned amount exceeds Rs 10,000 per annum (The interim budget 2019 has upped the interest earned amount to Rs 40,000 per annum). As deduction for any income amount earned through fixed deposits is not allowed in the same way, the deduction under Section 80TTA cannot be claimed against the interest amount earned from recurring deposits. Individuals and Hindu Undivided Family (HUF) are allowed to claim for deductions under this section. Others including firms, corporates, entities, artificial juridical person, the body of individuals, association of persons either domestic or foreign-based ones are not...

Section 80TTA deduction of the Income Tax Act allows the deduction of up to Rs 10,000 per year on savings account interest. Except for senior citizens, it applies to all individuals and HUFs (those above 60 years). On the other hand, senior citizens can benefit from a larger deduction of Rs 50,000 per annum on both savings and 80TTA Exemption on Interest Income When interest on deposits is included in a taxpayer's gross total Income, that Income is tax-free. Therefore, individual taxpayers, Hindu undivided families, and members of Hindu undivided families are all eligible. The interest income must originate from a deposit in a savings account with- • a financial institution to whom the Banking Regulation Act of 1949 (10 of 1949) applies • a cooperative society that operates in the banking industry • a cooperative land mortgage bank or cooperative land development bank • a Post Office established under the Indian Post Office Act of 1898 When calculating total Income, the assessee can claim tax exemption. The interest income from time deposits is not free from taxation. A time deposit is a deposit that is repayable after a set time and at a set interest rate. As a result, the exception is not permitted in the following situations: • Fixed-term deposit interest • Recurring deposit interest. • Any additional time deposits. Deductions Permitted Under Section 80TTA Section 80TTA allows the following taxpayers to seek deductions- • Individuals or Hindu Undivided Family (HUF.) • I...

Many taxpayers are benefited from the inclusion of Section 80TTA in the Finance Bill. Section 80TTA of income tax act provides for tax deductions on income from interest savings. A few restrictions and limitations apply to the deduction. Learn more about eligibility, amount, and exclusions to help you claim deductions under Section 80 TTA. Table of Contents • • • • • • • • • • • • • • • • • What is section 80TTA? Any banking company to which the Banking Regulation Act 1949 applies (including any bank or banking institution referred to in section 51 of that Act); A co-operative society engaged in the business of banking (including a co-operative land mortgage bank or a co-operative land development bank) or A post office within the meaning of section 2(k) of the Post Office Act of India, 1898. What is section 80 TTB of income tax act? As per Section 80TTB, a resident taxable senior over 60 years during a financial year can claim a tax credit of up to Rs 50,000. The 80TTB deduction for senior citizens offers seniors a way to save tax and protect themselves financially. Below is the interest income for which seniors can claim the Section 80TTB deduction. • Interest on deposits with banking institutions. Deposits can be either fixed deposits or bank savings accounts. The assessee must own an account. A bank company is an institution to which the Banking Regulation Act 1949 (10 October 1949) applies for purposes of Section 80TTB (including a bank or banking institution referred...

Few more days left to file your income tax return. It is important to file your ITR correctly and do not miss any transaction. One most common mistake is not reporting the interest earned on bank savings account. Interest on savings bank account over the deduction limit is taxed as 'Income from other source' as per the tax slab rate applicable to the tax payer. But if you miss reporting it in your ITR filing, you must be prepared to receive an income tax notice for that matter. And the Interest on savings bank account earned upto ₹10,000 per year is allowed as deduction under ₹10,000 includes interest from all savings accounts with banks, co-operative banks, and post offices. If the interest earned from these sources exceeds ₹10,000, the additional amount will be taxable under the head 'Income from other source.' Deduction under Section 80TTA is not allowed on interest earned on time deposits such as fixed deposits, recurring deposits or any other time deposits. Also no tax is deducted at source on interest income on bank savings accounts. Section 80TTA is not applicable to senior citizens. They enjoy a higher tax benefit under a different section. Interest earned on saving deposits and fixed deposit with banks or post office or co-operative banks for an amount up to ₹50,000 earned by the Also, there will be no deduction of tax at source up to ₹50,000. This limit of ₹50,000 has to be computed for every bank individually.

80TTA is an interest income deduction section of the income tax act that is available to resident individuals and Hindu United Families (HUF). Section 80TTA talks about the interest income deduction of INR 10,000. In this article we’re going to take a deeper look at section 80TTA, all its effects, how do you claim it and what other measures need to be kept in mind. What is interest income and which interest income is considered in section 80TTA? What is considered interest income 80TTA deduction for AY 2020-21 Section 80TTA of the income tax act talks about the interest income earned through various sources and the deduction that can be claimed while filing for taxes. The deduction allowed under section 80TTA is capped at INR 10,000 and it includes income only received through interest. Any other income cannot be clubbed under this section. However, not all interest income is included under this head. Interest income only from particular sources can be available for section 80TTA deduction. Some of the examples from where interest income can be deducted are: • Interest income earned from a savings bank account • Interest income earned from a cooperative society carrying on the business of banking • Interest income earned from the savings bank account in a post office These are the various sources from where the interest income earned is available for deduction under section 80TTA. For example, interest income earned from bonds that you bought either personally or for the b...

Income tax department with a view to encourage savings and investments amongst the taxpayers have provided various deductions from the taxable income under chapter VI A deductions. 80C being the most famous, there are other deductions which are beneficial for the taxpayers to reduce their tax liability. Let us understand these deductions in detail: Section 80 Deduction List Section 80C – Deductions on Investments Section 80C is one of the most popular and favourite sections amongst taxpayers as it allows them to reduce taxable income by making tax-saving investments or incurring eligible expenses. It allows a maximum deduction of Rs 1.5 lakh every year from the taxpayer's total income. The benefit of this deduction can be availed by Individuals and HUFs. Companies, partnership firms, and LLPs cannot avail the benefit of this deduction. Section 80C includes subsections, 80CCC, 80CCD (1), 80CCD (1b) and 80CCD (2). It is important to note that overall limit including the subsections for claiming deduction is Rs 1.5 lakh except an additional deduction of Rs 50,000 allowed u/s 80CCD(1b) Section 80C and its subsections Sections Eligible investments for tax deductions 80C Payments made towards life insurance premiums, Equity Linked Saving Schemes, payments made towards the principal sum of a home loan, SSY, NSC, SCSS, and so on. 80CCC Payment made towards pension plans, and mutual funds. 80CCD (1) Payments paid to government-sponsored plans such as the National Pension System, th...

Your savings bank interest is taxable! Ever wondered how savings bank interest is taxed and if you could save the income tax on it? We all have a savings bank account but most of us are not aware that the interest received is taxable under the head ‘Income from other sources. However, you can save taxes on interest received up to Rs 10,000. Section 80TTA of the Income Tax Act, 1961 provides a deduction of Rs 10,000 on such interest income. This article delves deeper into the details of Section 80TTA. What is Section 80TTA? Section 80TTA of the Income Tax Act, 1961 provides a deduction of up to Rs 10,000 on the income earned from interest on savings made in a bank, co-operative society or post office. There is no deduction for interest earned from fixed deposits. Who can Claim 80TTA Deduction? Can NRIs Avail of a Deduction under 80TTA? Section 80TTA deduction is available to an Individual and HUF. Yes, NRIs can also avail a deduction under Section 80TTA. It is pertinent to note that NRIs are allowed to open only two types of accounts in India. i.e. NRE and NRO accounts. However, only the NRO savings account holders can claim the benefit of Section 80TTA as interest earned on NRE accounts are tax-free. Note: This section is not applicable to senior citizens aged 60 years or more as Which Type of Interest Incomes are Allowed as Deduction Under Section 80TTA You can claim a deduction for interest income earned from the following: • From a savings account with a bank • From a s...

Few more days left to file your income tax return. It is important to file your ITR correctly and do not miss any transaction. One most common mistake is not reporting the interest earned on bank savings account. Interest on savings bank account over the deduction limit is taxed as 'Income from other source' as per the tax slab rate applicable to the tax payer. But if you miss reporting it in your ITR filing, you must be prepared to receive an income tax notice for that matter. And the Interest on savings bank account earned upto ₹10,000 per year is allowed as deduction under ₹10,000 includes interest from all savings accounts with banks, co-operative banks, and post offices. If the interest earned from these sources exceeds ₹10,000, the additional amount will be taxable under the head 'Income from other source.' Deduction under Section 80TTA is not allowed on interest earned on time deposits such as fixed deposits, recurring deposits or any other time deposits. Also no tax is deducted at source on interest income on bank savings accounts. Section 80TTA is not applicable to senior citizens. They enjoy a higher tax benefit under a different section. Interest earned on saving deposits and fixed deposit with banks or post office or co-operative banks for an amount up to ₹50,000 earned by the Also, there will be no deduction of tax at source up to ₹50,000. This limit of ₹50,000 has to be computed for every bank individually.