Section 80TTA of the Income-tax Act - deduction for interest earned. Section 80TTA of the Income Tax

 Act provides a rebate for interest income. Discounts are available with some limitations and

 restrictions. In this article, we have covered everything related to claiming tax exemption due to

 interest earned

Tax exemption on interest income.

 Where a taxpayer's total income includes any income through interest on the deposit, that income is tax-free. The taxpayer must be a separate taxpayer, a member of the Hindu Undivided Family or a Hindu Undivided Family.

 

A Co-operative society that carries on the banking business.

 

The assessor can claim tax exemption when calculating his total income

Tax exemption on the interest income from time deposit is not available. A time deposit is a deposit that is payable with a fixed interest rate upon the expiry of a certain period of time. Therefore, the exemption cannot be given in the following cases:

Interest from fixed deposits

Interest from recurring deposits

No other time deposit

Amount of exemption under Section 80 TTA of the Income Tax Act

The maximum discount allowed under 8TTA is Rs 10,000 for one financial year.

If the total interest is less than Rs.10,000, the actual interest is discounted.

If the total interest is more than Rs 10,000, only Rs 10,000 is allowed as tax exemption

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Govt of West Bengal


The appraiser must consider its total interest from all savings bank accounts.

Eligibility to make claims under 80TTA

Cutting approved under 80TTA

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

Private Taxpayer or Hindu Undivided Family (HUF)

Indian residents

Non-Resident Indians (NRIs) who own NRO Savings Accounts

An entity with savings account in an organization such as a bank, post office or Co-operative society

80TTA discount

The following types of taxpayers are not eligible for this discount:

Interest income arises from any deposit in a savings account. The account is on behalf of or on behalf of:

A firm, or

An association of individuals, or

A body of individuals

 

Then no exemption will be given to any partner of the firm or any member of the association or any person of the organization. No discount can be given against the interest income of these taxpayers while calculating the total income.

Basically, a firm, AOP or BOI cannot claim interest discounts. And the partner or member receives its income from these firms, AOP or BOI. Therefore, they cannot claim a cut

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Salary Structure

Moreover, even senior citizens cannot claim a waiver under the 80TTA. They can claim tax benefits within 80TTB.

 

You must first add interest income under the heading 'Income from other sources as interest income. You will then need to claim tax benefits under Section 80TTA under 80 Exemptions.

 

Income U/s  80TTB as per  the Income Tax Act, 1961

Where a taxpayer's total income includes any income through interest on the deposit, that income is tax-free.

 

Ways to earn interest on deposits:

Banking sector &

A post office under the Indian Postal Office Act, 1898

 

The assessor can claim tax exemption when calculating his total income

The maximum allowable discount of 8TTB for a financial year is Rs.

If the total interest is less than Rs 50,000, the actual interest is discounted.

If the total interest is more than Rs 50,000, only Rs 50,000 is allowed as tax exemption

 

The difference between Section 80TTA and 80 TTB

Section 80TTA

Approved for individual taxpayers and Hindu Undivided Family (HUF)

Interest earned on deposits with savings account only

 

Section 80TTB

Approved only for citizens over 60 years of age

Interest earned: - Deposit with a savings account - Fixed Deposit, Term Deposit or Recurring Deposit

The exemption limit under section 80TTB is Rs. 50,000 per annum

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Section 80TTA
section 80tta