Clarification needed on section 80TTA

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  1. Shankar Guru

    Shankar Guru New Member

    My mom is senior citizen (69 yrs) and her first taxable bracket is Rs.2,50,000 as per current laws. She does not have income over and above Rs.2,50,000, however, has SB interest exceeding Rs.10,000 in the current FY. Will sec 80TTA still apply in this case?
     
  2. Neha Sharma

    Neha Sharma Active Member

    Dear Shankar

    Of the total interest received on Savings Bank Account, Rs. 10,000 would be exempted and the balance interest would be added to the balance income And if the balance income is more than Rs. 2,50,000 - then only tax would be levied.

    As per the facts mentioned by you, you can claim benefit of Sec 80 TTA. Moreover, as her income is less than Rs. 2,50,000 - Nil tax would be liable to be paid.
     
  3. Shankar Guru

    Shankar Guru New Member

    Dear Neha,

    Thanks for your response and clarification on this earlier.

    A further question on this. Different banks credit SB interest for different durations of same year. Let me explain with below example:

    1) State Bank of Mysore (SBM) credits SB interest on 30-Jun for the period 1-Jan to 30-Jun and on 31-Dec for the period 1-Jul to 31-Dec.
    2) Canara Bank credits SB interest on 31-Jul for the period 1-Feb to 31-Jul and on 31-Jan for the period 1-Aug to 31-Jan.
    3) Citibank credits SB interest on 30-Sep for the period 1-Apr to 30-Sep and on 31-Mar for the period 1-Oct to 31-Mar.

    In case of Citibank, the SB interest is credited as per the Financial year (1-Apr to 30-Sep and 1-Oct to 31-Mar). However, in case of SBM and Canara Bank it is not so.

    Do we have to calculate prorated interest for the Financial year in these cases? That is, lets say for Canara Bank, prorate the interest received for 1-Feb to 31-Jul to 1-Apr to 31-Jul.
    OR
    Do we just take the actual interest amounts since they are for an year anyway?
     
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