Deduction on Interest U/s- 80TTA

Sec. 80 TTA provide a deduction of Rs. 10000/-on interest income. This deduction is available to an individual and HUF for A.Y. 2018-19 and onward

This deduction is allowed on interest earned-

• From a saving account with a bank.
• From a saving account with a post office
• From a saving account with a co-operative Bank.

Note:- This deduction is NOT allowed on interest earned on Fixed deposit, recurring deposit(RD) and any other time deposit.

How to avail deduction: - 

1. Maximum deduction of Rs. 10000/- or,
2. Interest earned during the year as specified above.

                     Whichever is lower