Saving Interest Deduction under Sec.80TTA, 80TTB and Exemption under Sec. 10(15)(i)
How to save tax on saving
income for the F.Y. 2019-20
Government collects
taxes in order to run different projects in different fields such as health,
education and infrastructure. The minimum threshold limit for F.Y. 2019-20 as per
the financial budget is as below: -
AGE LIMIT (As individual or Karta of HUF)
|
INCOME
THRESHOLD
|
Up to
60 years
|
INR
2,50,000
|
From
60 to 79 Years
|
INR
3,00,000
|
80
Years or more
|
INR
5,00,000
|
It is
mandatory for an individual to file return if the income of a financial year
increased this threshold. The department provides various deductions under
different sections to the assessee’s, who are filing return before the due
date. Let’s talk about deduction and exemptions from saving interest income.
1. Section
80TTA – This section provides the deduction of saving
interest up to a maximum limit of Rs. 10,000. This deduction is available to
all assessee (individual and HUF) except for senior citizens.
2. Section
80TTB – This section is available to senior citizens
(assessee of 60 years or more). The assessee can avail a deduction of all type
of interest income (Saving, Fixed, or Post office deposits) up to a maximum of
Rs. 50,000.
PARTICULARS
|
80TTA
|
80TTB
|
Assessee
|
Individual
or HUF Except Senior citizens
|
Only
Senior citizens
|
Type
of income
|
Saving
Interest
|
All
type of Interest
|
Deduction
Amount
|
10,000
|
50,000
|
3. Section
10(15)(i) – This section
provides exemption on notified incomes by the government. On 3rd June,
2011, Government notified the post office saving bank interest exemption up to
Rs. 3,500 for an individual account and up to Rs. 7,000 for joint account
holder.
To
Conclude – An individual assessee can claim up to Rs. 13,500 while senior citizen can avail up to Rs. 53,500 of income in the form of deduction and exemption of interest income
through filing ITR before due date.
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