Deduction in respect of interest on deposits in saving accounts - Section 80TTA - Income Tax - Ready Reckoner - Income Tax

Deduction in respect of interest on deposits in saving accounts - Section 80TTA Deduction up to 10,000 shall be available on interest earned by an individual or HUF on its saving account in: i. Bank ii. Co-operative Banks iii. Post Office Where interest is received from savings account held by a firm, an AOP or a BOI, no deduction shall be allowed under this section In respect of such income in computing the total income of any partner of the firm or any member of the AOP/ BOI. Note: However, no deduction shall be available in respect of Fixed Deposits. This deduction is NOT allowed on interest earned on time deposits. Time deposits mean deposits repayable on expiry of fixed periods. It shall not be allowed for Interest from fixed deposits, Interest from recurring deposits, Any other time deposits. How to claim the deduction First add your total interest income under the head Income from other sources in your Return. The deduction is shown under section 80TTA .