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.
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 80 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.