Claim Proper Deduction of saving bank Interest
Section 80 TTA has been inserted with effect from the
assessment year 2013-14. It provides a deduction upto Rs 10000 in aggregate to
an assessee(being an individual or a hindu undivided family) in respect of any
income by way of interest on deposits(not being time deposits) in a saving
acccount with :–
a. A banking
company;
b. A cooperative
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. A Post
office.
However
, where the aforesaid income is derived from any deposit in a savings account
held by, or on behalf of a firm ,an association of persons or a body of
individuals,no deduction shall be allowed in respect of such income in computing the total income of any
partner of the firm or any member of the association or body.
*Post office
savings bank interest exemption under section 10(15)(i)- Post office
savings bank interest is exempt up to Rs
3500 (in an individual account)and Rs 7000(in an joint account) under section
10(15)(i) by virtue of Notification No
.332/2011,dated June 3,2011,read with Notification No.GSR 607 ,dated June 9,
1989.
The
cumulative impact of sections 10(15)(i) and 80TTA is as follows-
|
Up to the assessment year
2011-12 Rs.
|
For the assessment year
2012-13 Rs
|
From the assessment year
2013-14 Rs
|
Interest on post office
savings bank (exemption under section 10(15)(i)
|
Full Exemption , nothing
is taxable.
|
Exemption up to Rs 3500
in a single account and Rs 7000 in a joint account.
|
Exemption up to Rs 3500
in a single account and Rs 7000 in a joint account.
|
Interest on savings
account with a bank , cooperative bank and post office (deduction under
section 80 TTA)
|
No Deduction
|
No Deduction
|
Deduction up to Rs 10,000
|
I and my wife have a joint savings account.My salary is deposited in this account and home loan deduction is also through this account.My wife transfers (from her account)50% home loan share to this account. Is the interest earned in this savings joint account, applicable for deduction under section 80TTA? If so, Can I, take the full deduction or will there be a split in deduction?
ReplyDeleteas first holder of the account you can claim deduction up to Rs. 10000/-
ReplyDeleteThankyou TAxvani, one more question, Does this joint account form a Body of Individuals, for which section 80TTA is not applicable?
ReplyDeleteMaintaining joint account doesn't mean Body of individuals
DeleteIS DEDUCTION ALLOWED FOR POST OFFICE SAVING INT U/S 80TTA AND EXEMPTION U/S 10(15) BOTH SIMULTANEOUSLY???
ReplyDeleteWILL IT NOT COUNT TO DOUBLE BENEFIT TO TAX PAYER??
under what interest money government gives 10000 except on a single account interest or all the account interest money-10000?
ReplyDelete