The provisions of Section 80 TTA of the Income Tax Act may read as follows: -
Discounts in stores on savings account in accordance with the provisions of Chapter 80 TTA
•
Account where the total income of an appraiser (excluding the assessment
prescribed in the 80TTB section for senior residents) is included in the savings
(not the time deposit) as an individual or a Hindu integrated family.
1.
Banking Institutions: Interest earned from any banking institution (including
any bank or banking institution referred to in Section 51 of that Act) is
applicable under the Banking Regulation Act, 1949 (10 of 1949);
Cooperative
Societies: Interest received from a co-operative society engaged in conducting
banking business (including a co-operative land mortgage bank or a co-operative
land advance bank); Or
3.
Mailing stations: Interest received from mail centers as defined as section (k)
of section 2 of the Indian Mailing Stations Act, 1898 (6 of 1898),
If
the above conditions are satisfied, the following section will be approved in
accordance with 80TTA:
1.
a. In cases where the total amount of such national income does not exceed
10,000 And
2.
b. In any other case, 10,000.
Income
from any savings in the account held by any organization or by any organization
or by any individual organization or by any fund under the application in this
section,
No
exemption will be allowed under this section in calculating the total income of
any partner or association of the company or any person or body.
"Time
deposit" here means repairable deposit fixed deposit after the expiration
date.
The
applicability of the exemption under section 80TTA?
Section
60 TTA sets a number of parameters that select the tax deduction by saving the
amount of interest on the account, especially 10,000. Thus, it is very clear
that Section 80 allows the TTA to save such taxable income on interest income
derived from “savings accounts”.
Accordingly,
Section 80 does not allow other interest income from TTA banks, financial
institutions from other instruments for example, recurring stores, fixed deposit,
company stores are not eligible to avail Section 80 TTA discount.
Therefore,
any person or persons of HUF can claim tax deduction on interest income up to
Rs. 10,000 / - received from the following:
From
a savings bank account held in a bank;
From
Post Office Savings Account.
Exemption:
However, interest received from fixed deposit, repurchase deposit, banks,
financial institutions, co-operative social orders, mailing stations and other
maintained stores under this section are not eligible for tax deduction under
this section.
Who
can claim 80 TTA discount?
Under
the provisions of Section 80TA, only individuals from Hindu Unified families
can claim a discount of Rs. 10,000
for the amount of interest charged on deposit held in savings accounts.
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Furthermore,
it should be borne in mind that the 80 TTA discount allows a maximum amount of
Rs. 10,000 to be maintained in the name of the maximum assessee for interest
income received from all savings accounts.
Does
80TTA apply to non-residents?
According
to Section 70 TTA, non-residents have no limit to claim income tax exemption on
interest income earned from savings accounts. However, the maximum discount
amount is limited to 10,000 only if all the savings accounts are combined.
Can
we claim 80 TTA and 80 TTB?
The
answer is basically no. Section 80TTB applies to senior residents. According to
Section 80 TTB, a senior resident can claim a maximum discount of up to Rs.
50,000 a year under Section 80 TTB for interest income from a bank for interest
income (RD, FD, Time deposit). , Cooperative Banks are not yet from any
organization's FD
Thus, in fundamental terms, the Income-tax Act does not personally allow both Section 80TTA and 80TTB to appreciate exemptions. Senior Residents Claiming Discounts U / S 80TTB cannot appreciate the benefits provided under Section 80TTA.
