Section 80TTA – All about Claiming Deduction on Interest
80 TTA eligible deduction Not Coming In computation
Section 80TTA provides a Deduction in respect of interest on deposits in savings account. Where the gross total income of an assessee , being an individual or a Hindu undivided family, includes any income by way of interest on deposits (not being time deposits) in a savings account
This deduction is allowed on interest earned –
- From a savings account with a bank
- From a savings account with a co-operative society carrying on the business of banking
- From a savings account with a post office
The maximum deduction is limited to Rs 10,000. If your interest income is less than Rs 10,000, the entire interest income will be your deduction
Interest on savings bank account over the deduction limit is taxed as 'Income from other source' as per the tax slab rate applicable to the tax payer
The calculation of '80tta dedication ' has been further explained by way of the following example in software
Here other source income is already setoff by business loss, so
80 TTA eligible deduction not coming in computation , 80tta deduction will be allowed only when your income is in other source after setoff.
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