Download Auto Calculate Income Tax Preparation Software in Excel for all Salaried Persons for the F.Y.2023-24 and A.Y.2024-25 with Section 80TTA/80TTB- Exemption for interest earned
Download Auto Calculate Income Tax Preparation Software in Excel for the all Salaried Persons for
the F.Y.2023-24 and A.Y.2024-25
Therefore, Exemption for interest income on savings account
After that, Section 80TTA allows HUFs or individuals to claim exemption up to Rs. 10,000 with interest earned in a savings account. In other words, A deduction is made on the interest earned on an account held with a bank, post office, or cooperative society. The maximum discount limit is Rs. 10,000 irrespective of the amount of interest accrued.
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However, It is to be noted that the income under Section 80TTA does not include interest earned on fixed deposits, recurring deposits, and other term schemes. In addition, there is no exemption for Non-Resident Indians (NRIs).
Similarly, Lower interest expenses for the elderly
For instance, Section 80TTB is a recent amendment providing an exemption from interest earned on deposits by senior citizens. This section was introduced in the 2018 Finance Act and applies to people aged 60 and over. Though higher than section 80TTA, the deduction under section 80TTB is Rs. 50,000.
Above all, Senior citizens can claim this deduction on interest earned on savings accounts, fixed deposits, recurring deposits, or other term deposits.
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It must be noted that the exemption under Section 80TTB is not available to any other category other than HUF or other senior citizens. After that, The upper limit of total expenditure under this section is 50,000 thousand.
Similarly, All individuals and HUFs can apply for exemption under Section 80TTA. As per section 80TTB, all senior citizens aged 60 and over can apply for an exemption.
Note that interest earnings in excess of the deduction limit will be taxed at the applicable rate for the individual.
In conclusion, The interest income U/s 80TTA & Section 80TTB is not entitled to interest income from sources other than savings accounts or deposits. For example, interest earned on bonds, stocks, or mutual funds does not qualify for these deductions.
Additionally, when filing your income tax returns, it’s important to declare any interest earned on savings accounts or deposits. Failure to do so may trigger an Income Tax Department notice and may impose penalties.
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Benefits of section 80TTA and section 80TTB application
Some of the benefits of Section 80TTA and 80TTB are:
Claiming deductions under Section 80TTA and Section 80TTB can reduce the taxable income, which further reduces the overall tax liability.
People can help people save a lot of money, especially the elderly who have limited resources.
Documents required to apply for an exemption
To apply for exemption under Section 80TTA or Section 80TTB, persons are required to submit the following documents:
Proof of age
Any other government-issued ID
Reductions in joint accounts
In the case of joint accounts, Interest income U/s 80TTA or section 80TTB can be entitled only primary account holder. If the 2nd account holder is over the age of 60 years of age, they can claim the benefits U/s 80TTB from the interest claimed on their share. Tax deductions are applied to each account holder separately depending on the slab they fall into.
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Eligible to claim an exemption U/s 80TTA & section 80TTB?
If get the benefits U/s 80TTA or Section 80TTB, an individual or HUF must file an Income Tax Return (ITR). Taxpayers fill out ITR forms online or offline with relevant details to claim deductions. This benefit is not available to those who have not applied while filing for ITR.
Individuals and HUFs should ensure the recording of the proposed profit and deductions for future reference.
Section 80TTA and Section 80TTB are two important exemptions that help save tax on interest income earned on accounts or deposits. These exemptions are intended to encourage savings and investments among individuals/HUFs and senior citizens. It is important to ensure that you have all the necessary documentation and evidence when claiming these benefits. Taxpayers can also consult their advisers.
Download Auto Calculate Income Tax Preparation Excel-Based Software All in One for the All Salaried Persons for the F.Y.2023-24 andA.Y.2024-25
Feature of this Excel Utility:-
1) This Excel utility prepares and calculates your income tax as per the New Section 115 BAC (New and Old Tax Regime)
2) This Excel Utility has an option where you can choose your option as a New or Old Tax Regime
3) This Excel Utility has a unique Salary Structure for All Salaried Persons.
4) Automated Income Tax Arrears Relief Calculator U/s 89(1) with Form 10E from the F.Y.2000-01 to F.Y.2023-24 (Update Version)
5) Automated Income Tax Revised Form 16 Part A&B for the F.Y.2023-24
6) Automated Income Tax Revised Form 16 Part B for the F.Y.2023-24