New Income Tax Section 115 BAC

Exemption from the Savings Bank Interest U/s 80TTA – Including Automated Income Tax Calculator All in One for the Govt and Non-Govt Employees for F.Y.2020-21

The provisions of Section 80TTA of the Income Tax Section 115 BAC introduced in Budget 2020. As per the Section 115 BAC, you should give your option as you are opt-in as New Income Tax Regime in the newly prescribed Form 10-IE. If you choose the New Income Tax Regime then you can avail this Exemption U/s 80 TTA. 

Exemption interest on deposits within the savings accounts as per the provisions of Section 80TTA.

Where the gross total income of an assessee (other than the assessee mentioned in section 80TTB for Senior citizens), being a private or a Hindu undivided family, includes any income by way of interest on deposits (not being time deposits) during a bank account with—

1. Banking Concerned: Interest earned from a Savings Bank to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution mentioned in section 51 of that Act);

2. Co-operative Society: Savings Interest earned from a co-operative society  (including a co-operative land mortgage bank or a co-operative exploitation bank); or

3. Post Office: Savings Interest earned from a Post Office as defined in clause (k) of section 2 of the Indian Post Office Act, 1898 (6 of 1898),

If the above conditions are satisfied the subsequent deductions are going to be allowed as per Section 80TTA:

A. during a case where the quantity of such income doesn’t exceed within the aggregate Rs.10,000/- the entire of such amount; and

B. in any other case, Rs.10,000/-

Further where the income mentioned during this section springs from any deposit during a bank account held by, or on behalf of, a firm, an association of persons or a body of individuals.

No deduction shall be allowed under this section in respect of such income in computing the entire income of any partner of the firm or any member of the association or any individual of the body.

You may also like the Automated Income Tax H.R.A. Exemption Calculator U/s 10(13A)

Applicability of deduction under section 80TTA?

Section 80TTA Exemption from Income Tax on interest income earned from “Savings Accounts” only.

Thus, Section 80TTA does not allow other interest income received from Banks, the financial organization’s from other deposit such as Recurring Deposits, Fixed Deposits, Company Deposits are not eligible for getting the benefits of Section 80TTA deduction.

A private or a member of HUF can claim deduction of Income Tax deduction under this section.

You may also like the Automated Income Tax All in One Value of Perquisites U/s 17(2)

Who can claim 80TTA Deduction?

As per the provisions of Section 80TTA only individual and members of Hindu Undivided Family can claim deductions of Rs.10,000/- for interests earned on deposits held within the savings accounts only.

Further, it should be kept in mind that 80TTA deduction is allowed for a maximum amount of Rs.10,000 for interest income earned from all the bank account altogether maintained in the name of the assesses.

Is 80TTA applicable for non residents?

As per Section 80TTA, there are not any restrictions on Non-residents to say Section 80TTB up to a maximum amount of Rs.50,000 in a year,

So, in simple words, the 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

Income Tax Calculator for the F.Y.2020-21
Income Feature of this Excel Utility:-

1) This Excel Utility Prepare Your Income Income Tax Section as per Budget 2020

3) Automated Income 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 Income Tax Revised Form 16 Part A&B for the F.Y.2020-21

9) Automated Income

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