Download Automated Income Tax Arrears Relief Calculator U/s 89(1) with Form 10 E for the
F.Y.2021-22 with details of Section 80TTA of the
Income Tax Act
Download Automated Income Tax
Arrears Relief Calculator U/s 89(1) with Form 10 E for the F.Y.2021-22.What is
Section 80TTA?
As per the Income Tax Act Under
Section 80TTA provides for an Exemption
for interest income from Bank/Post Office. Discounts are available with a few
limitations and limitations. In this article, we have covered everything about
claiming a tax deduction because of the interest earned
Tax exemption on interest income
Where the total income of a
taxpayer includes any income through interest on the deposit, such income is
tax-free. The taxpayer must be an individual taxpayer, a member of a Hindu
undivided family, or a member of a Hindu undivided family.
The way to earn interest should be
from a deposit with a savings account:
A banking institution where the
Banking Regulation Act, 1949 (10 of 1949), applies
A cooperative society is involved
in the banking business.
The assessee can claim a tax
deduction when calculating his total income
Tax deduction on the interest
income from the time deposit is not available.
Therefore, the exemption is not
allowed in the following cases:
Interest from fixed deposits
Interest from recurring deposits
No other time deposit
The amount of deduction under
section 80TTA of the Income-tax Act
The maximum discount allowed under
8TTA for a financial year is Rs.
Actual interest is discounted if
the total interest is less than Rs.
If the total interest is excess
than Rupees Ten Thousand, only Rupees Ten Thousand is entitled as tax exemption
The assessee must consider his /
her total interest from all savings bank accounts.
Eligibility to claim an exemption
under 80TTA
Cutting approved under 80TTA
The below-given taxpayers can be
entitled to get the benefits under Section 80TTA of the Income Tax Act:
Private Taxpayer or Hindu Undivided
Family (HUF)
Indian residents
Non-Resident Indians (NRIs) own NRO
Savings Accounts
Deduction under 80TTA is
unauthorized
The following types of taxpayers
are not eligible for deduction:
Interest income is received from
any deposit in a savings account. The account is owned by 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
body. These taxpayers will not be allowed to deduct against interest income
when calculating total income.
Furthermore, even senior citizens cannot
claim a waiver under the 80TTA. They can claim tax benefits under 80TTB.
How to claim Section 80 TTA
exemption while filing an income tax return?
First, you add the interest income
with your total income. You will then have to claim tax benefits under section
80 deduction under section 80TTA.
Income Tax Section 80TTB only for Senior Citizen above 60 years of age.
Where the total income of a
taxpayer includes any income through interest on the deposit, such income is
tax-free.
Ways to earn interest on deposits
with:
A co-operative society is engaged
in conducting banking business.
A post office under the Indian Post
Office Act, 1898
The assessee can claim a tax
deduction when calculating his total income
A maximum of Rs 50,000 was approved
by 8TTB for a financial year.
If the total interest is less than
Rs. 50,000, the actual interest is discounted.
The difference between Section
80TTA and 80TTB
Section 80TTA Section 80TTB
Individual Taxpayer and Hindu
Undivided Family (HUF) only allowed for senior citizens above 60 years of age
Interest earned on deposits with
savings account only: - Deposit with a savings account - Fixed deposit, term
deposit or recurring deposit
Exemption limit under section 80TTA Rs.10,000 per annum Exemption limit under section 80TTB Rs.50,000 per annum
Download Automated Income Tax Arrears Relief Calculator U/s89(1) with Form 10 E for the F.Y.2021-22
