80 TTA deductions

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  1. him51069

    him51069 New Member

    I have saving plus account and I have earned Rs. 18000 as interest and Rs. 1800/ as TDS by nationalise bank for f.y. 2015-16. Can I show the same as under 80TTA for Rs. 10000/ deductions ...?
     
  2. Yes, u can do. You can claim exemption upto Rs. 10,000 and remaining Rs. 8,000 will be taxable u/h IOS.
     
  3. ZED

    ZED Well-Known Member

    @CA Honey huney
    I have one reservation, please share your views.

    The aforementioned account is a saving plus account which has a facility of time deposit and hence interest therefrom is not purely from saving account interest.

    Further, Tax has been deducted from the interest income. In case of interest from saving bank account, the interest is not deductible due to clause vii to subsection 3 to section 194A, but in this case the tax has also been deducted this implies that even bank does not treat it as a mere saving account.

    If we take a view that interest should be bifurcated then TDS should not have been at full interest income.

    Kindly share your views.

    S.194A (3) The provisions of sub-section (1) shall not apply—

    (vii) to such income credited or paid in respect of deposits (other than time deposits made on or after the 1st day of July, 1995) with 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);
     
  4. In that case you cannot claim exemption. Its is clearly mention in section 80TTA that deduction is allow only on saving bank interest and not on time deposit.

    And bank deduct TDS ,so it clearly means its time deposit which cannot be withdrawn before a fixed date.

    You can also see this section under below link:

    http://www.incometaxindia.gov.in/pages/acts/income-tax-act.aspx
     
  5. ZED

    ZED Well-Known Member

    Yup, thats what I had in mind, but was confused when you allowed the deduction earlier.

    @him51069 , we both are of view that deduction is not available to you.
     
    Last edited: Jun 23, 2016
  6. Yes... Exemption is not allow.

    Thank you.
     
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