Nsection 80tta of income tax act pdf

This deduction is given for interest earned on saving deposits with bank, cooperative society or post office. Section 80tta of income tax act deduction in respect of. These limits got modified from that of the previous limits of rs. Section 80tta provides a deduction of rs 10,000 on interest income. Section 80tta deduction interest on bank savings deposit taxguru. Section 80 tta of income tax act deduction in respect of interest on deposits in savings account section 80tta. Savings account interest above rs 10,000 is taxable under the head income from. Download the list of sections of income tax act,1961 in pdf and excel format. Deduction under this section can be claimed against income that comes in the form of interest from a savings account. For understanding the overall concept of income tax law in india, one should have to know the title or contents topics covered under sections 1 to 298 of income tax act, 1961 as amended by the. Due to the nature of the deduction under this section, they are known as income based deductions.

Section 80tta grants a deduction on savings account interest up to rs 0 per annum. You can save tax on up to rs 17000 savings account interest. Know all about section 80c of income tax act the economic times. Income tax any interest income earned by an individual or a hindu undivided family on savings accounts held with banks or cooperative society or post office is allowed as a deduction under section 80tta of the income tax act. Income interest from a bank deposit in any form if exceeding from. The finance bill 2012 has proposed to insert a new section 80tta in the income tax act 1961 which will provide deduction up to rs. The new section 80tta inserted by the finance act, 2012 makes this provision. Students taking ca intermediate ca ipcc exams or students preparing for taxation will find the file very useful. This additional deduction us 80tta is applicable only to individual and huf on interest income from bank saving account. Section 80tta deduction on interest on saving account. Deductions under chapter vi a of income tax act for fy.

Under the income tax act, 1961, any individual who has been a resident of india for the assessment year and suffers from at least 40% disability as specified by the law are eligible for deductions. Section 80ib, incometax act, 1961 2015 deduction in respect of profits and gains from certain industrial undertakings other than infrastructure development undertakings. Any interest income earned by an individual or a hindu undivided family on savings accounts held with banks or cooperative society or post office is allowed as a deduction under section 80tta of the income tax act. Income of local authorities section 1020 income tax. Income tax act 94 of 1983 income tax amendment act 30 of 1984 income tax act 121 of 1984 income tax act 96 of 1985. Section 105a of the income tax act and section 44a of the sales tax act 6. Income tax act, shall continue to be treated as an approved plan, fund or scheme for the purposes of the income tax act. In the income tax act, section 80tta is termed as deduction in respect of interest on deposits in a savings account. Act 34 of 1938 amended by 22 of 1946 1 of 1951 22 of 1951 23 of 1951 33 of 1952 20 of 1954 30 of 1954 26 of 1955 11 of 1956 34 of 1956 23 of 1957 18 of 1958 3 of 1962 16 of 1963 5 of 1964 29 of 1966 42 of. Section 80tta deduction interest on bank savings deposit. How senior citizens can avail tax break on interest income under. This section is about claiming deduction on interest.

Deductions under section 80tta and how to claim it. However, section 80tta of the income tax act offers tax deduction on interest income earned from deposits held in savings account of some financial institutions. The income tax department never asks for your pin numbers, passwords or similar access information for credit cards, banks or other financial accounts through email the income tax department appeals to taxpayers not to respond to such emails and not to share information relating to their credit card, bank and other financial accounts. It applies to all individuals and hufs other than senior citizens those above 60. Section 80tta of income tax act tax rebate of rs 10,000. Any individual, being a resident or a nonresident indian nri or a hindu undivided family huf having interest income on deposits in savings bank account in india is entitled to a deduction us 80tta up to a maximum of rs. Viewers are advised to ascertain the correct positionprevailing law. Section 80tta is the very important part of the deduction available to individual and huf form their gross income. But 80tta deduction for ay 201819 will be given only to the extent of. The income tax law consists of income tax act 1961, income tax rules 1962, notifications and circulars issued by central board of direct taxes cbdt. What is deduction under section 80tta of income tax act. The provisions relating to the same are explained in the current article. Thus, it is considered as an income based deduction.

Complete list of sections of income tax act, 19612019 aubsp. Abhishek soni, ceo and founder, an itr filing website says, an individual can claim deduction of interest income from saving account held with post office as per section 80tta of the income tax act to the extent of rs 10,000 or, in case the individual is a senior citizen, up to rs 50,000 under section 80ttb. Section 80m of the income tax act inter corporate dividends. Under section 80tta of income tax act, the deduction is allowed on saving account interest up to 0 per annum. This video will help you gain a better understanding about the deduction available on interest on bank savings deposit u. Section 80tta provides deduction on interest income from savings bank account to individuals and huf. Section 80tta is introduced with effect from april 01, 20 and will apply from ay 2014 and onwards. Let us have a birds eye view of the provisions of the abovementioned section of the income tax act, 1961. Section 80tta of the income tax act allows deduction of up to rs 10,000 of the total interest income earned from savings account held with a. Income of local authorities section 1020 income tax income of local authorities section 1020. Income tax act, 2015 4 act 896 income tax act, 2015 68. Tax deductions under income tax acts section 80u are made available for rs.

Deduction for interest on deposits in savings accounts up. Under the proposed new section 80tta of the income tax act, a deduction up to an extent of ten thousand rupees in aggregate shall be allowed to an assessee, being an individual or a hindu undivided family, in respect of any income by way of interest on deposits not being time deposits in a savings account with. Summary of sections income tax act 1961 is available for download at the excellent download file is in the format of pdf. Section 80tta of income tax act section 80tta of income tax act section 80tta of income tax act last updated. Also, if a senior citizen opts to take advantage of section 80ttb, he cannot claim further tax benefit us 80tta. Feb 10, 2010 karnataka poultry farmers seek agriculture status under income tax act. New section 3c of the incometax act, 1961 an analysis. Section 80e of the income tax act has been structured by the indian government to ensure that expenses incurred for ones education do not become an extra liability in the future. In every year annual budget, certain changes are made to laws so as to get aligned with the changing trends but no changes have been made into section 80tta in the union budget 2018. Income tax deductions under section 80c, 80ccd, 80ccc, 80u, 80ee.

Section 80ddb of the income tax act can be used by resident individuals and hufs and offers provisions for income tax deductions on the expenditure incurred by familyan individual towards medical treatment of a particular disease. Section 80tta is included in chapter vi a of the income tax act. The deductions are also available on health top ups, super top ups and critical illness covers. Jun 30, 20 for giving additional income tax deduction on interest on saving bank account new section 80tta under income tax act,1961 was introduced through finance act, 2012. In union budget 2018, there has been no changes made in section 80tta. The excellent download file is in the format of pdf. It reads as follows highlights added power to call for information by prescribed income tax authority. Section 9 of the income tax act, 1961hereinafter referred to as act is a sort of a legislation which may be extraterritorial, and time and again, its validity has been challenged which proved of no avail. Section 80tta section 80tta of income tax act an individual can claim for deduction on interest income of up to rs 10,000 per annum under this section. Earlier, this deduction was available to everyone irrespective of their age, i. Section 80tta provides the deduction for the interest on the deposits in the savings account by the taxpayer in the previous year.

According to this senior citizen can claim tax exemption up to rs 50,000 on interest income from bank post office fixed deposit, recurring deposit or savings account. Deduction in respect of interest on deposits in savings account. Thea finance billa 2012 has proposed to insert a newa section 80ttaa in thea income tax acta a 1961 which will provide deduction up to rs. This new section was introduced in the finance act 2012 and is applicable from the financial year 2014. The finance budget 2018 introduced section 80ttb, which provides a tax relaxation on interest income for the senior citizens of india. Section 80tta grants a deduction on savings account interest up to rs 10,000 per annum. Section 50c of the income tax act, 1961 the act history and brief background of the evolution of section 50c under the act of 1922, first proviso to section 12b2 entitled the assessing officer to ignore the actual consideration received for the transfer and to substitute a notional or artificial consideration based on the fair market value. Clause 29 of the bill seeks to amend section 80tta of the income tax act relating to deduction in respect of interest on deposits in savings account. Section 80tta is introduced to provide deduction to an individual or a hindu undivided family in respect of interest received on deposits not being time deposits in a savings account held with banks, cooperative banks and post office.

Section 80tta income tax deduction on interest on savings. Request for further information by commissionergeneral 75. Budget 2018 along with many changes to tax laws also introduced a new section 80ttb. It is advised that for filing of returns the exact calculation may be made as per the provisions contained in the relevant acts, rules etc.

Given income tax act sections list includes revised, omitted and newly added tax rules. Section 80ttb of the income tax act provides a deduction to a senior citizen in respect of interest income earned on deposits with a bank or a cooperative society or a post office. Section 1015i of the incometax act, 1961 act for interest earned on. Furthermore, any gain or loss on the disposal of an assets used to produce such exempt income was disregarded for capital gains tax purposes. It applies to individuals and hufs other than senior. A complete guide on section 80tta of income tax act.

Prior to the substitution, clause b, as substituted by the finance act, 1978, w. Section 80tta of the income tax act allows you to claim deductions on savings accounts deposits that are held in a post office, bank, or cooperative society. As per section 80ttb of income tax act, senior citizens can claim tax exemption up to rs. Senior citizens can instead take advantage of a bigger deduction of rs 50,000 per annum on both savings and fd interest under section 80ttb.

All air prevention and control of pollution act, 1981 apprentices act, 1961 arbitration and conciliation act, 1996 banking cash transaction tax black money undisclosed foreign income and assets and imposition of tax act, 2015 central boards of revenue act, 1963 charitable and religious trusts act, 1920 charitable endowments act, 1890. Section 80tta has been inserted with effect from the assessment year 2014. Deduction of interest on savings bank account us 80tta. Interest on savings account has income tax exemption up to rs 10,000 from 01 april 20. Click to view the institutions registered under section 80g, 12 a and more. How senior citizens can avail tax break on interest. Taxation of recreational clubs may 2007 issue 93 in the past, recreational clubs clubs enjoyed complete exemption from income tax. List of sections of income tax act 1961 download pdf. Deduction under section 80tta of the income tax act resolved. Therefore, they wont be able to take tax benefit under section 80tta of the income tax act. Sec 80tta income tax exemption is allowed to an individual as well as a huf this deduction is given for interest earned on saving deposits with bank, cooperative society or post office. Did you know that the interest you receive on your savings account is. There are numerous aspects to be borne in mind by resident and foreign companies when considering the. Section 200 of income tax act duty of person deducting tax section 200.

Section 80u deduction under section 80u of income tax act. When a boy wrote a poem justifying indias first income tax act. Its functions are to levy, collect, administer and recover income tax. Deduction on interest under section 80tta of income tax act. Section 80tta of income tax act check deductions bankbazaar. Income tax act 58 of 1962 south african government. Section 80tta of income tax act deduction in respect of interest on. The maximum amount of deduction available in inr 50,000. Post office savings interest up to rs 3500 is exempt for single acs and up. Section 80tta of the income tax act allows deduction of up to rs 10,000 of the total interest income earned from savings account held with a bank or post office in a single financial year.

The most comprehensive guide for all income tax deductions section 80c to section 80u covered in chapter vi a of income tax for the fy 201920 ay 202021 many of you may be aware that investments can help you save tax, but what you may not be aware of is that income tax department gives tax benefits for incurring some personal expenses as. Section 80ddb provides that if an individual or an huf has incurred medical expenses for treatment of specified disease or ailment, such expense is allowed as deduction, subject to such conditions and capped at such amount as specified, under section 80ddb of income tax act. Section 80tta all about claiming deduction on interest cleartax. The number of provisions contained in the income tax act of 1962 the act which deal with the tax treatment of interest income and interest expenditure has gradually increased over time. Only those who cant seek relief under section 80ttb can seek relief under section 80tta. Can i claim medical expenses for my wife as deduction under income tax act. Information relates to the law prevailing in the year of publication as indicated. Exemption from stamp duty or transfer duty relating to the transfer of marketable securities or property or of rights or obligations under bonds under a scheme for the rationalization of a group of. May 28, 2018 a detailed explanation about the deduction us 80tta of the income tax act. Latest income tax act sections list has been provided for finance people. Individuals and hufs who earn interest on their deposit in a savings account can claim tax exemption on such interest. Understanding how section 80c of the income tax act works. Deduction of interest on saving account under section. Deduction in respect of interest on deposits in savings account is defined under section 80tta of income tax act 1961.

Deduction in respect of interest on deposits in savings accounts us. Section 80tta of income tax act section 80tta deals with the tax rebate available on interest earned in your savings bank account upto a limit of rs 10,000 in a financial year. The constitution of india schedule vii union list entry 82 has given the power to the central government to levy a tax on any income other than agricultural income, which is defined in section 101 of the income tax act, 1961. Section 80d of the income tax act deals with tax benefits available on the amount a taxpayer pays as the premium for health insurance cover.

The said section, inter alia, provides that 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 in a. Since section 80ttb provides much higher and wider tax relief, senior citizens have nothing to complain about. In india, less than onefifth of the population has health insurance cover. Deduction under section 80tta income tax department. Section 80u income tax deduction under section 80c. Here sec 80tta plays a crucial role in easing the tax burden of the small earnings income group.

What are the five heads of income under income tax act. The income tax act, 1961 is the charging statue for income tax. Silke on south african income tax chapter 19 par 1. In the income tax act, section 80tta is titled as deduction in respect of. Tax deductions under income tax act s section 80u are made available for rs. Section 80e allows a taxpayer to avail deduction on taxes on the payable interest upon the educational loan. The policy behind section 80 differs from the alternative, and relatively straightforward policy accepted in the united states. A new deduction in the income tax has been introduced in this budget, interest on saving account deduction. The section 80u deals with tax deductions meant for residents of india who are categorized as disabled according to government rules. Income tax deduction income tax standard deduction 2019 2020. For multiple keywords search please use space between each keyword.