• Oct
  • 12
  • 2012

Section 80TTA Deduction – Interest on deposits in savings account

Article ID 53046 | Posted In Income Tax | , | 2 Comments » Print Friendly and PDF

Deduction in respect of interest on deposits in savings account (Section 80TTA):

Section 80TTA has been introduced from this Financial Year [2012-13] and it allows to an Individual or HUF 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.

If such savings account is maintained in a

(a)  banking company to which the Banking Regulation Act, 1949 (10 of 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 cooperative 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 (6 of 1898),

For this section, “time deposits” means the deposits repayable on expiry of fixed periods.

  • rugram

    Thanks for making the correction.

  • rugram

    The very first article entitled “Deduction for interest on deposits in savings accounts up to 10K Rs.” (March 17, 2012, written after presentation of the Union Budget 2012) under ‘Related Posts’ above, mentions that the then proposed exemption U/s 80TTA would be available to all individual and HUF assessees. However, the current write-up says that the exemption is available to ’employees’. The writer of the current article should perhaps clarify why the exemption is now restricted only to employees.