Author Topic: Savings Account interest up to Rs10,000 exempt under Section 80TTA  (Read 803 times)

Komal Chautala

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Interest on Saving Bank Account

Saving Bank interest , however small the amount is , is your income. No tax is deducted(TDS) on Interest of Saving Bank account.

From FY 2012-13 (AY 2013-14) year section 80TTA  has been introduced for which deduction up to an extent of Rs 10,00 in interest from all the bank accounts is allowed to an individual or Hindu undivided family, Interest over Rs 10,000 will be taxed at marginal tax rate of an individual. Section 80TTA is shown in Deductions under Chapter VI-A along with 80C, 80D.

You need to add interest from saving account to  Income from other sources and then claim deduction under section 80TTA. If your total interest income from ALL your saving bank accounts is less than  or equal to Rs 10,000 

For example if your interest from ALL saving bank accounts is Rs 7,000 you need to show 7000 in income from other sources and then show Rs 7000 for section 80TTA

If more than Rs 10,000 say 15,000  then add 15,000 to Income from other sources and then show Rs 10,000 in Section 80TTA



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