Section 80 TTA

Section 80 TTA

Section 80 TTA is applicable from AY 2013-14. Under this section, assesses like Individuals and Hindu Undivided Family, who are earning Interest from Savings account kept with a bank, cooperative bank or post office, will be allowed a deduction of Rs. 10,000 from Gross Total Income.

Who can benefit from section 80 TTA deduction?

Assesses like Individuals and Hindu Undivided Family.

When deduction is not allowed?

This deduction is not allowed for Interest on Savings account earned by, or on behalf of, a firm, an association of persons or a body of individuals, in computing the total income of any partner of the firm or any member of the association of persons or any individual of the body of individuals.

Also, if interest on saving account is not included in total taxable income, then deduction under section 80 TTA cannot be claimed.

Another point to be kept in mind is that deduction under Section 80 TTA is not allowed on Interest on Fixed Deposits (time deposits/term deposits) with Banks. Interest on Fixed deposits with Banks (with duration of 5 or more years) are covered under Section 80 C for deduction.

Although, this is a useful deduction for assesses who were paying tax on interest income from savings account. The question is, practically speaking how many assesses include Interest on savings account in their Total Taxable Income. Also, there is no TDS applicable on Interest paid on savings account. Hence, this income is often missed out from being included in Total taxable income. This deduction has put taxability of Interest on savings account into spotlight.

About onlineITreturn.com

OnlineITreturn.com is an online portal for efiling your income tax return. We collect your information for income tax return filing over our website www.onlineITreturn.com. Thereafter the information for each individual is reviewed by our team of chartered accountants (CA) who prepares the tax computation. We then efile your income tax return using approved e-intermediaries.

Wealth Tax Return Form

Notification No: 32/2014 dated 23/06/2014 (Wealth Tax Return Form)

From assessment year 2014-15 onwards, the return of net wealth (wealth tax return) in the case of individuals, Hindu undivided families and companies shall be in Form BB (wealth tax return form).

For the assessment year 2014‐15 and any other subsequent assessment year, the return of net wealth shall be furnished electronically under digital signature.

In the case of individual or Hindu undivided family to whom the provisions of section 44AB of the Income‐tax Act, 1961(43 of 1961) are not applicable, the return of net wealth may be furnished for assessment year 2014‐15 in a paper form.

Also, the return of net wealth required to be furnished in Form BB shall not be accompanied by a statement showing the computation of the tax payable on the basis of the return, or proof of the tax and interest paid, or any document or copy of any account or form of report of valuation by registered valuer required to be attached with the return of net wealth under any provisions of the Act.

About onlineITreturn.com

OnlineITreturn.com is an online portal for efiling your income tax return. We collect your information for income tax return filing over our website www.onlineITreturn.com. Thereafter the information for each individual is reviewed by our team of chartered accountants (CA) who prepares the tax computation. We then efile your income tax return using approved e-intermediaries.