80TTA Tax Rebate
Interest on savings account has income tax exemption up to Rs 10,000 from 01 April 2013. The new section 80TTA inserted by the Finance Act, 2012 makes this provision.
Eligibility for 80TTA
Individuals and HUFs who earn interest on their deposit in a savings account can claim tax exemption on such interest. Savings account can be with a bank, post office or co-operative society doing banking business. This deduction is not valid for time deposits like FD and RD.
If the savings account is held on behalf of a firm, association of persons or body of individuals this deduction is not applicable.
Maximum deduction limit under 80TTA
Up to Rs 10,000 as savings deposit interest can be claimed as exemption under section 80TTA. If the interest is lesser then that amount can be claimed.
How to get 80TTA deduction
Tax rebate under section 80TTA is over and above other
chapter VI-A deductions like 80C, 80D etc. You can submit certificate from bank
to your employer to get this deduction from salary TDS. If you don't do this,
you can still claim it by putting the amount in cell for 80TTA under Chapter
VI-A deductions in ITR form while filing tax returns.
