Sec 80TTA - clarification

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  1. bblalgupta

    bblalgupta New Member

    Respected Sir

    I understand that under sec 80TTA a rebate of Rs 10,000/- is available on interest income. I am a Sr Citizen and having interest income on my SB A/C with 2 Banks and Post Office . I also have monthly interest income ( MIS) from my deposit with post office. Please let me know --

    Whether Income under POST Office MIS also qualifies for rebate under 80TTA ? OR any other IT concession available under any section forFinancial Yr2015-16 ie ass yr 2016-17.

    Thanks
    B B L Gupta
     
  2. ZED

    ZED Well-Known Member

    Let's see what the provision says (with special emphasis on coloured text)

    80TTA. (1) Where the gross total income of an assessee, being an individual or a Hindu undivided family, includes any income by way of interest on deposits (not being time deposits) in a savings account with—

    (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) a 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) a Post Office as defined in clause (k) of section 2 of the Indian Post Office Act, 1898 (6 of 1898),

    there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee a deduction as specified hereunder, namely:—

    (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.

    (2) Where the income referred to in this section 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 under this section in respect of such income in computing the total income of any partner of the firm or any member of the association or any individual of the body.

    Explanation.For the purposes of this section, "time deposits" means the deposits repayable on expiry of fixed periods.
     
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