It is noted that this Exemption entitled to the taxpayers who are opt-in the Old Tax Regime U/s 115BAC Introduced in Budget 2020
The Unique Section 80TTA provides a deduction of Rs 10,000/- on the interest income from Savings Bank Interest Max Rs. Ten Thousand. This deduction is out there to a private and HUF.
This deduction is allowed on interest earned:
• From a savings bank account with a bank or Post Office
• From a bank/post office account with a co-operative society carrying on the business of banking
• From a bank account with a post office
This deduction isn’t allowed on interest earned on time deposits:
The most valuable deduction under Section 80TTA shall not be allowed for the New Tax Regime and:
• Interest from fixed deposits
• Interest from recurring deposits
• Any other time deposits
Earlier, this deduction was available to everyone regardless of their age, i.e., to individuals aged below 60 years, senior citizens, and super senior citizens.
However, with effect from the fiscal year 2018-19, senior citizens cannot claim deduction under this section. Post Budget 2018, section 80TTA has been amended which restricts senior citizens from claiming any deductions on interest received on bank account either with bank or post office under this particular section. However, they will claim deduction up to Rs 50,000 for interest received from the bank account and glued deposit with banks and post office under the newly inserted section, i.e., section 80TTB.
What is Section 80TTB?
Section 80TTB which was applicable w.e.f 1 April 2018 may be a provision whereby a taxpayer who may be a resident oldster, aged 60 years and above at any time during a financial year claim a deduction of Maximum of Rs 50,000 or an amount from a specified income from his gross total income for that FY.
Specified income is any of the subsequent income in aggregate:
• Interest on bank deposits (savings or fixed);
• Interest on deposits held during a co-operative society engaged within the business of banking, including a co-operative land mortgage bank or a co-operative exploitation bank; or
• Interest on post office deposits
Download Automated Income Tax Preparation Excel Based Software All in One for the Andhra Pradesh State Govt. Employees for the Financial Year 2020-21 and Assessment Year 2021-22 U/s 115BAC
Andhrapradesh State Employees Salary Structure
Feature of this Excel Utility:-
1) This Excel Utility Prepare Your Income Tax as per your option U/s 115BAC perfectly.
2) This Excel Utility has the all amended Income Tax Section as per Budget 2020
3) Automated Calculation Income Tax House Rent Exemption U/s 10(13A)
4) Individual Salary Structure as per the Andhra Pradesh State Employees Salary Pattern
5) Individual Salary Sheet
6) Individual Tax Computed Sheet
7) Automated Income Tax Revised Form 16 Part A&B for the F.Y.2020-21
8) Automated Income Tax Revised Form 16 Part B for the F.Y.2020-21
10) Automatic Convert the amount into the in-words without any Excel Formula
11) Automated Income Tax Arrears Relief Calculator U/s 89(1) with Form 10E from the F.Y.2000-01 to F.Y.2020-21 (Updated Version)
Who is taken into account an oldster in India?
According to the law, an oldster is a private resident between the age brackets of 60 to 80 years, as on the Maturity Day of the previous Financial year.
Who is taken into account as an excellent oldster in India?
A super oldster is a private resident who is above 80 years, as on the Maturity Day of the previous financial year.
Let us ask the below summary to seek out what interest incomes are taxable and what are exempt:
Interest income on a hard and fast Deposit – The interest income on a hard and fast Deposit is taxable, and one has got to pay taxes as per the applicable tax slab rates. But it appears that the bank shall deduct TDS on this income, although TDS is cut only interest income exceeds Rs 10,000 in any given financial year. However, the relaxation limit for the Senior Citizens above 60 years is Fifty Thousand U/s 80TTB. One also can avail of exemption on TDS by filing Form 15G (15H for senior citizens) if your overall taxable income from all sources is below the respective exemption limit.
Interest income on bank account up to Rs 10,000 (Rs 50,000 for senior citizens), is exempt. However, any interest income on savings bank account above Ten Thousand will be taxable as per applicable slab rates for that Financial Year. Account calculating the relief of Interest limit, interest income from all the accounts is added, including bank Savings Accounts, post office Savings Accounts, and co-operative bank Savings Accounts.
Interest income on Recurring Deposit – The interest income earned on Recurring Deposit is fully taxable with none deduction unlike that of a bank account. However, Section 194A, banks can deduct TDS on Recurring Deposit interest income at the rate of the rate fixed by the CBDT.
Interest income on Public Provident Fund (PPF)
PPF falls under the Exempt-Exempt-Exempt (EEE) category. Interest earned from PPF is fully exempted from tax with none limits. The interest is compounded annually on PPF, with the calculation done monthly. The interest earned also because the withdrawals from PPF are tax-free.
Download Automated Income Tax Preparation Excel Based Software All in One for the Government and Non-Government (Private) Employees for the Financial Year 2020-21 and Assessment Year 2021-22 U/s 115BAC
Feature of this Excel Utility:-
1) This Excel Utility Prepare Your Income Tax as per your option U/s 115BAC perfectly.
2) This Excel Utility has the all amended Income Tax Section as per Budget 2020
3) Automated Income Tax Arrears Relief Calculator U/s 89(1) with Form 10E from the F.Y.2000-01 to F.Y.2020-21 (Updated Version)
4) Automated Calculation Income Tax House Rent Exemption U/s 10(13A)
5) Individual Salary Structure as per the Govt and Private Concern’s Salary Pattern
6) Individual Salary Sheet
7) Individual Tax Computed Sheet
8) Automated Income Tax Revised Form 16 Part A&B for the F.Y.2020-21
9) Automated Income Tax Revised Form 16 Part B for the F.Y.2020-21
10) Automatic Convert the amount into the in-words without any Excel Formula
