Can I claim both 80TTA and 80TTB?

Asked by: Dr. Johann Collins V  |  Last update: February 9, 2022
Score: 4.7/5 (41 votes)

Can senior citizens claim both 80TTA and 80TTB? No, a senior citizen can claim deduction u/s 80TTA only. Who is eligible for an 80tta deduction? An individual taxpayer and a Hindu Undivided Family (HUF) are eligible for an 80TTA deduction.

Is Section 80TTA applicable to FD interest?

Section 80TTA of the Income Tax Act 1961 provides deduction on the interest earned on your savings account with a bank, cooperative society or post office, up to Rs. 10,000/-. No deduction for FD interest is available u/s 80TTA.

Is 80TTA applicable for FY 2020 21?

What is the deduction limit available under section 80TTA for the financial year 2020-21? A maximum limit of Rs 10000 is available under sec 80tta for fy 2020-21.

How do I claim 80TTB deduction?

Amount of Deduction under 80TTB

If the interest income is less than Rs 50000 then the total amount of interest income is tax-exempt. However, if the interest income is more than Rs 50,000 (including interest from all the deposits) then Rs 50,000 is available as a deduction.

Is 80TTA allowed in new tax regime?

"As Section - 80TTA and 80TTB are covered under chapter-VIA and the new tax regime excludes deductions under chapter-VIA subject to certain exceptions. ... This loss could be set off against salary income thereby reducing the individuals' taxable income and net tax liability.

Day 26 | Deduction U/s 80TTA & 80TTB | Empowering the Salaried Class | Income Tax On Salary

16 related questions found

Is standard deduction and 80TTB same?

A. Standard deduction is available for pension received from your old employer to the extent of ₹50,000 per year. ... Section 80TTB deduction benefits can be claimed from the respective ITR under deductions under Chapter VIA.

Can I claim 80EE every year?

Section 80EE allows income tax benefits on the interest portion of the residential house property loan availed from any financial institution. You can claim a deduction of up to Rs 50,000 per financial year as per this section. You can continue to claim this deduction until you have fully repaid the loan.

How can I avoid paying taxes on my savings account?

How to Avoid Tax on a Savings Account
  1. Invest your assets in a tax-deferred account(s), such as a traditional IRA or 401(k) to put off paying taxes until you withdraw the money in retirement.
  2. Keep your money in a tax-exempt account(s), such as a Roth IRA or a Roth 401(k).

Is interest on SB account taxable?

Interest generated on a savings bank account is tax-free up to ₹10,000, under section 80TTA of the Income Tax Act.

How much is exemption under 80TTA?

Deduction under Section 80TTA

You can claim exemption on up to Rs. 10,000 received as interest on your savings account deposits.

Who can claim deduction under 80TTA?

Maximum Deduction Allowed Under Section 80TTA

If your interest income is less than Rs 10,000, the entire interest income will be your deduction. If your interest income is more than Rs 10,000, your deduction shall be limited to Rs 10,000.

What amount of interest is tax free?

Deduction on Interest Income Under Section 80TTA

For a residential individual (age of 60 years or less) or HUF, interest earned upto Rs 10,000 in a financial year is exempt from tax.

Who Cannot claim 80TTB?

1,50,000 available under section 80C? Ans. Yes, it is over and above the limit of Rs 1.5 lakhs u/s 80C. From the FY 2020-21 the benefit under section 80TTB will only be available under the old tax regime and taxpayers opting for new tax regime cannot claim this benefit while filing ITR.

Why is 80TTB not reflecting?

As per the Income Tax rule, losses from business income (non-speculative) gets set off against IFOS income. Hence in your case section, 80TTA is not being picked up OR being picked up partially since it is being set off against your non-speculative losses. ...

How much bank interest is tax free for seniors?

Section 80TTB of the Income Tax Act allows tax benefits on interest earned from deposits with banks, post office or co-operative banks. The deduction is allowed for a maximum interest income of up to ₹ 50,000 earned by the Senior Citizen.

Can I claim both 80EE and 80EEA?

If you have rented out the property, the entire home loan interest is allowed as a deduction. If you are able to satisfy the conditions of both Section 24 and Section 80EEA of the Income Tax Act, you can claim the benefits under both the sections.

Can I claim both 24b and 80EE?

This deduction can only be claimed if the owner or his or her family members reside in the house property. If one is able to meet the conditions of both the sections i.e. Section 24 and Section 80EE, the individual can avail benefits under the two.

How do I claim 50000 standard deduction?

The standard deduction is usually deducted from the gross salary and claimed as an exemption without having to show any proof of expenses. Hence, this flat amount of Rs 50,000 is deducted from the gross salary, which then brings overall taxable income of an individual lower, thereby reducing the tax outgo.

Should I opt for Section 115BAC?

The above table shows that it is beneficial to opt for the New Tax Regime of Section 115BAC if your Income is more than Rs. 8,50,000 with your eligible Deduction under 80C. The selection of New Tax Regime of Section 115BAC is not advisable up to your income Rs.

Why is 80TTA disabled?

Deduction under section 80TTA will be allowed only if you have shown income of Rs. 3500 as interest from saving bank a/c otherwise it will be disallowed. if you have shown income of Rs. 3500 as interest on saving bank a/c and still it is disallowed then you can file rectification in e filling portal of Income Tax.

Which deductions are not allowed under new tax regime?

Exemptions and deductions not claimable under the new tax regime
  • The standard deduction under Section 80TTA/80TTB, professional tax and entertainment allowance on salaries.
  • Leave Travel Allowance (LTA)
  • Minor child income allowance.
  • Helper allowance.
  • Children education allowance.
  • Other special allowances [Section 10(14)]

Are interest paid and interest accrual both counted as being taxable?

Banks normally withhold tax on interest accrual in each financial year on a year-on-year basis. Thus, practically, interest income from fixed deposits is taxed on a year-on-year basis as per the certificates shared by the bank to avoid any mismatch.

Is 80TTA Over and above 80C?

The tax deduction under Section 80TTA is over and above the deduction of ₹ 1.5 lakhs, which is deducted under Section 80C. No Tax Deduction at Source (TDS) for savings accounts held by individuals and HUFs. ... In such cases, the individual does not need to file any tax return.