Tuesday, August 30, 2016

Deductions on Interest on Savings Account

Section 80 TTA: Deduction from gross total income for Interest on Savings bank account

A deduction of maximum Rs 10,000 can be claimed against interest income from a savings bank account. Interest from savings bank account should be first included in other income and deduction can be claimed of the total interest earned or Rs 10,000, whichever is less. This deduction is allowed to an individual or HUF. And it can be claimed for interest on deposits in savings account with a bank, co-operative society or post office. Section 80TTA deduction is not available on interest income from fixed deposits or recurring deposits or interest income from corporate bonds.

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