Section 80TTA and Section 80TTB

 Section 80TTA

• 1. Eligibility: Deduction u/s 80TTA is available to an assessee, other than the assesse referred to in Section80TTB, being an individual or HUF.
• 2. Deduction is allowed from the following incomes:
  • a. Interest earned from savings account with a bank
  • b. Interest earned from savings account with a co-operative society carrying on banking business.
  • c. Interest earned from savings account with a post office.
• 3. Deduction limit:
  • a. In a case where amount of such income does not exceed in the aggregate Rs. 10,000, the whole of such amount; and
  • b. In any other case, Rs.10000.
• 4. Deduction is not allowed from the following incomes:
  • a. Interest from Fixed deposits.
  • b. Interest from recurring deposits.
  • c. Any other times deposits.
• 5. No TDS will be deducted u/s 194A, on interest income from saving account held with banks, co-operative societies and post offices up to the amount of Rs.10000.

  Section 80TTB

• 1. Eligibility: Deduction u/s 80TTB is available to an assesses who is a senior citizen.
• 2. Deduction is allowed from the following incomes
  • a. Interest on bank deposits (savings or fixed)
  • b. Interest on deposits with co-operative societies carrying on banking business.
  • c. Interest on post deposits.
• 3. Deduction limit:
  • a. In a case where amount of such income does not exceed in the aggregate Rs. 50,000, the whole of such amount; and
  • b. In any other case, Rs.50000.
• Analysis :In the following conditions 80TTA will be applicable: