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.
