What is section 80TTA?
Section 80tta provides a deduction of Rs.10000 on interest earned by an individual on his or her savings accounts income.
Who is eligible?
Deduction under section 80tta is allowed only to individual tax payers and Hindu undivided family (HUF). This benefit is not available to a firm, an association of person, a body of individuals, LLP or company etc.
Claiming deduction u/s 80tta
You can claim deduction on interest earned –
Deduction not allowed u/s 80tta
You cannot claim deduction on interest earned on term deposits. Term deposits means deposits which are repayable on expiry of fixed period. Deduction is not allowed if –
The maximum deduction allowed u/s 80TTA is Rs.10000. If your interest income is less than Rs.10000, full amount of interest will be your deduction but if your interest income is more than Rs.10000, you are entitled for maximum deduction of Rs.10000 only not more than that.
How to claim deduction u/s 80tta?
To claim deduction u/s 80tta, you have to add all your savings interest income under the head “Income from other sources” while preparing your tax return. This deduction is shown under “section 80 deduction”.
Documents required for deduction under section 80tta
You can easily calculate your interest income & tax deduction with the help of savings bank account statement.
How banks compute interest on Savings account?
Many peoples become confused between the old and the new method used for calculating interest on savings account. Both the methods used by banks for calculating savings interest are given below –
How Finacbooks help?
Finacbooks is one of the leading firms in India having more than 10 years of experience in providing hassle free accounting & legal services. As you know, there are several provisions under income tax act and section 80tta is only one of them. Before making your tax returns, you must have proper knowledge about the tax reliefs to claim the tax benefits and save the maximum money on your taxes. Help from professional experts is very necessary to claim maximum benefits while preparing tax returns. We are having a team of experts who not only helps you in filing the taxes properly but also file the taxes for you. You can contact our accounting experts who will file your taxes online accurately while giving you maximum tax benefits.
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