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 allowed to claim a deduction as per
Section 80TTA. Maximum Deduction
