Section 80TTA provides a deduction up to Rs. 10,000 in aggregate 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.
Where the gross total income of an assessee, being an individual (other than a senior citizen) 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, 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 cooperative 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,
a deduction of such interest shall be allowed to the maximum extent of Rs.10,000 to an assessee (other than the assessee referred to in section 80TTB, i.e., a senior citizen) being an individual or HUF.
However, 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.
1. For the purposes of this section, “time deposits” means the deposits repayable on expiry of fixed periods.
2. This deduction is allowed whether the individual or HUF is resident or non-resident. |