Income Tax

Tax Benefits on Bank Interest

Section 80TTA/80TTB of Income Tax Act provides that in case the gross total income of an assessee being, an individual or a HUF, includes any income by way of interest on saving deposits. Such interest income shall be earned from saving account is maintained with:

  • a banking company to which Banking Regulation Act, 1949 applies;
  • a co-operative society engaged in carrying on banking business;
  • a post office.

Quantum of Deduction

  • Section 80TTA – Upto Rs. 10,000
  • Section 80TTB – Upto Rs. 50,000 (including interest on FDs)- Only for Senior Citizen.

Incorporating financial well-being into tax planning is a holistic approach to wealth management. Sections 80TTA/80TTB not only provide deductions but also promote responsible financial habits. By leveraging these sections effectively, individuals can optimize their tax liabilities securing their financial future.

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