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Budget 2012-13 has brought back the old and deleted deduction section Section 80L of the Income Tax Act which used to lower the total income as far as interest income was concerned ,  in form of Section 80TTA  which allows Individuals and HUF a maximum deduction of Rs 10,000 from interest earned on savings account. budgetDeductions

It is to be noted that the deduction u/s  80TTA of Income Tax Act is not allowed on any term deposit or time deposit or fixed deposits.The savings account with an bank or cooperative society or post office are allowed the deduction u/s 80TTA.

However, where the aforesaid interest 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.

About Prashant Thakur

The author has spent twenty years with Income Tax department and desire to service common citizen of India which include professionals like tax practioners ,CA,ICMA, CS and tax lawyers by advising them on the direct tax matters for a very affordable fee.

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Print Friendly

Budget 2012-13 has brought back the old and deleted deduction section Section 80L of the Income Tax Act which used to lower the total income as far as interest income was concerned ,  in form of Section 80TTA  which allows Individuals and HUF a maximum deduction of Rs 10,000 from interest earned on savings account. budgetDeductions

It is to be noted that the deduction u/s  80TTA of Income Tax Act is not allowed on any term deposit or time deposit or fixed deposits.The savings account with an bank or cooperative society or post office are allowed the deduction u/s 80TTA.

However, where the aforesaid interest 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.

About Prashant Thakur

The author has spent twenty years with Income Tax department and desire to service common citizen of India which include professionals like tax practioners ,CA,ICMA, CS and tax lawyers by advising them on the direct tax matters for a very affordable fee.

No Comments

Be the first to start a conversation

Leave a Reply

You must be logged in to post a comment.