Section 80TTA of Income Tax - Deduction of Saving Account Interest
Section 80TTA of the Indian Income Tax Act provides for the deduction of interest on saving banks.
SECTION 80TTA OF INCOME TAX - DEDUCTION OF SAVINGS BANK INTEREST
Who is eligible for Section 80TTA deduction?
This section applies to any Individual and HUF only. Further, there is a separate provision for Senior Citizens under section 80TTB.
Which Saving Bank accounts are covered in this section?
The interest received from the following savings bank accounts is covered under this section -
(a) Any Banking Company to which the Banking Regulation Act, of 1949 applies,
(b) Any co-operative society engaged in the business of banking,
(c) Any Post Office
What is the maximum limit of Deduction u/s 80TTA?
The deduction available under this section is lower of -
(a) Actual Interest earned on savings bank account
(b) Rs. 10000/-
Thus there is a maximum limit under this deduction which is Rs.10000/-
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