What is the Section 80TTA as per the Income Tax Act? Section 80TTA of the Income Tax Act provides for the exemption for interest income. Discounts are available with some restrictions and restrictions. In this article, we cover everything related to applying for a tax deduction on accrued interest
Tax deduction on interest income
Where a taxpayer's total income includes any deposit interest income, that income is tax free. The taxpayer must be an individual taxpayer, a Hindu undivided family member or a Hindu undivided family member.
The mode of interest income should come from a savings account deposit:
A banking company covered by the Banking Regulation Act, 1949 (10 of 1949)
A cooperative society is engaged in the conduct of banking business. The appraiser can request the tax deduction in the calculation of his total income
There is no tax deduction on interest income from term deposits. A fixed deposit is a deposit payable at a fixed interest rate at the end of a certain period of time. The exemption is therefore not allowed in the following cases:
Interest from fixed deposits
Interest from recurring deposits
Any other fixed deposit
The amount of the deduction under Article 80TTA of the Income Tax Law
The maximum discount allowed under section 8TTA for a financial year is Rs.10,000/-
If the total interest is less than Rs. 10000, the actual interest is free.
If the total interest is over 10,000 rupees, only 10,000 rupees are allowed as a tax exemption
The valuer should consider his total interest from all savings bank accounts.
Eligibility to apply for exemption under 80TTA
Cutting is permitted under section 80TTA
The following taxpayers can apply for deductions under Article 80TTA of the Income Tax Act:
Individual tax payer or Hindu Undivided Family (HUF)
Indian resident
Non-resident Indians (NRIs) own NRO savings accounts
An entity that has a savings account in an organization such as a bank, post office, or co-operative
The deduction was denied under Section 80TTA
The following types of taxpayers cannot benefit from the deduction:
Interest income arises from any deposits in the savings account. The account is owned by or on behalf of:
A firm, or
An association of individuals, or
The human body
No cuts will therefore be allowed to any member of the company or to any member of the association or to any person of the institution. These taxpayers will not be allowed to deduct from interest income when calculating total income.
Also, seniors cannot apply for a waiver under section 80TTA. They can claim tax benefits under section 80TTB.
How to apply for Section 80TTA deduction when filing your tax return?
You must first add interest income as interest income under "Income from other sources". You will then need to claim tax benefits under section 80TTA under the section 80 deduction.
Section 80TTB as per the Income Tax Act, 1961
Where a taxpayer's total income includes any deposit interest income, that income is tax free. The taxpayer must be a Indian resident. A senior citizen is a person whose age is sixty or older at any time in the previous year in question.
Deposit interest income method with:
A banking company covered by the Banking Regulation Act, 1949 (10 of 1949)
The appraiser can request the tax deduction in the calculation of his total income
You are allowed to deduct a maximum of Rs 50,000 under section 8TTB for one financial year.
If the total interest is less than Rs. 50,000, the actual interest is free.
The difference between the 80TTA and 80TTB section
Section 80TTA & Section 80TTB
Private taxpayers and the Hindu Undivided Family (HUF) are only allowed seniors over the age of 60
Interest accrued on interest accrued on a savings account deposit: - Savings account deposit - Fixed deposit, Fixed deposit or Recurring Deposit
The exemption limit under section 80TTB is Rs 10,000 per year The exemption limit under section 80TTB is Rs 50,000 per year
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