Hey welcome back, lets begun our today’s blog & learn some tax saving opportunities.
While filling the income tax ever year you must have heard the term Form 26AS. Form 26AS is a statement which give details of tax deducted from your salary, it also put light on how much tax has been deducted from our saving banks & FD interest. This interest adds up in to our earning & thus increases our tax liabilities.
In this section we put light on opportunities of saving tax on that interest earned.
Sub Section 80TTA(1) & 80TTB
This section 80TTA(1) is applied to our bank’s & post office saving account. Under this sub section tax assessee can claim deduction upto Rs. 10000 i.e. if earned interest is above Rs. 10000 let sey Rs. 12000 then an individual can claim deduction till Rs. 10000 only.
In many cases bank regularly deduct TDS from savings account & fixed deposits if the depositor has not submitted Form 15H, so to get refund assessee need to fill the deduction details under 80TTA(1) column while filing the ITR.
Sub section 80TTB is just like 80TTA(1) but it three major differences:
- First it applies to senior citizens (whose age is above 60 years).
- Second it is applicable to interest on bank’s & post office saving account as well as corporate society bank accounts.
- Third under this assessee can claim deduction upto Rs. 50000.
Please find difference is brief:
|Applicable to individuals and HUF except for senior citizens
|Applicable to senior citizens
|Interest on savings account only
|Interest on all kinds of deposits
|Quantum of deduction
|Upto Rs 10,000
|Upto Rs 50,000
This is end for our blog on section 80TTA(1) & 80TTB, remember deduction on interest under this section is over & above deduction limit of Rs. 1.50 Lac (i.e. 80C in general). See you in next blog.