Section 80TTA – Deduction i.r.o. interest on deposits in Saving Account: IT Circular 20/2015
5.5.12 Deduction in respect of interest on deposits in savings account (Section 80TTA)
This chapter is the part of 5.5 DEDUCTIONS UNDER CHAPTER VI-A OF THE ACT [Click to view] of IT Circular 20/2015
Other Chapters
5.5.9 Deductions on respect of donations to certain funds, charitable institutions, etc. (Section 80G)
INCOME-TAX DEDUCTION FROM SALARIES
DURING THE FINANCIAL YEAR 2015-16 ASSESSMENT YEAR 2016-2016
UNDER SECTION 192 OF THE INCOME-TAX ACT, 1961
5.5.12 Deduction in respect of interest on deposits in savings account (Section 80TTA):
Section 80TTA has been introduced from the Financial Year 2012-13 and it allows to an employee from his gross total income if it includes any income by way of interest on deposits (not being time deposits) in a savings account, a deduction amounting to:
(i) in a case where the amount of such income does not exceed in the aggregate ten thousand rupees, the whole of such amount; and
(ii) in any other case, ten thousand rupees.
The deduction is available if such savings account is maintained in a
(a) banking company to which the Banking Regulation Act, 1949, applies (including any bank or banking institution referred to in section 51 of that Act);
(b) co-operative society engaged in carrying on the business of banking (including a co-operative land mortgage bank or a co-operative land development bank); or
(c) Post Office as defined in clause (k) of section 2 of the Indian Post Office Act, 1898,
For this section, “time deposits” means the deposits repayable on expiry of fixed periods.
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See Other parts of IT Circular 20/2015 at:
Income Tax Deduction from Salaries during FY 2015-16 AY 2016-17: Circular No. 20/2015
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