1. What is 80TTA Calculator?
80TTA calculator is an online utility tool that helps to estimate the deductions on your interest income. It lets you know if you are eligible for claiming the deductions on salary. Section 80TTA of the Income Tax Act was oriented to authorize a deduction of up to Rs.10,000 on such interest.
2. How to calculate 80TTA deductions?
The deductions are calculated with the following method under 80TTA.
Mr. Verma receives a salary of ₹5,00,000 with an interest of ₹5,000 on a banking saving account and ₹15,000 in interest on fixed deposits. Moreover, a deduction of ₹10,000 is available under section 80c. The most elevated amount that can be deducted is ₹10,000. If your interest income is slighter than ₹10,000, then you can calculate this total amount as a deduction. If you earn more than ₹10,000 in interest, your deduction would be limited to ₹10,000.
Eligibility criteria to use 80TTA calculator
The using process requires the following conditions to be met.
The individuals must be Indian citizens.
You should have an income source
The individual should earn interest income in a savings account. Benefits of 80tta calculator
There are several advantages of using an 80tta calculator. Investors can calculate the estimated deduction under section 80tta of the income tax act.
- An 80tta calculator helps you to save precious time by eliminating complex manual calculations
- Investors can get the deduction amount under section 80tta. It evolves easily to plan financial expenses accordingly.
- Myitronline calculator is free and can be used unlimited times.
- You can compare the wealth gained and investment objective in seconds with the help of the myitronline 80tta calculator.
3. Difference between section 80TTB and 80TTA
|Parameters||Section 80TTB||Section 80TTA|
|Eligibility||Only senior citizens are eligible u/s 80TTB||Individuals and HUFs can claim deductions under section 80tta|
|Exemption Limit||Individuals can claim a Maximum of Rs.50,000 in a year u/s 80TTB||Maximum of Rs.10,000 a year under section 80tta.|
|Specified Income||Deduction on interest from all kinds of deposits||Deduction on interest from the savings account only|
|Applicability for NRI’s||NRIs are not qualified to claim deductions under 80TTB||NRI with NRO who have a savings account can proclaim deduction u/s 80TTA|
4. Qualified interest for deduction under section-80TTA
Following interest is qualified for deduction under section-
- Interest gained from the savings account of the bank.
- Interest earned from the saving account of the Cooperative society.
- Any interest gained from saving account of the post office.
Following interests are not qualified for deduction under section-
- Any interest earned from the FD (fixed deposit)
- Interest earned from the RD (recurring deposits)
- Any interest gained from any other deposit.
5. What are the required documents?
Under section 80tta, you can claim a deduction with the help of required documents such as Form-16 along with the bank statements that contain your transactions of saving account.
Frequently Asked Questions
How do you calculate 80TTA?
To calculate 80tta, let's take an example - Mr. Verma receives a salary of ₹5,00,000 with an interest of ₹5,000 on a banking saving account and ₹15,000 in interest on fixed deposits. Moreover, a deduction of ₹10,000 is available under section 80c. The most elevated amount that can be deducted is ₹10,000. If the interest earned income is not more than ₹10,000, then you can count this whole amount as a deduction. If you earn more than ₹10,000 in interest, your deduction would be limited to ₹10,000.
How much is the rebate for 80TTA?
The maximum amount to rebate is Rs. 10,000 for 80tta. But if any individual is earning a salary of 10,000 then the whole earned income will be his/her deduction.
Is 80TTA applicable on FD interest?
No. section 80tta is not available for on-time deposits such as fixed deposits.
Is 80TTA In addition to 80C?
The limit of tax deduction under section 80tta is above 1.5 lakhs. The same is deducted under section 80c.
Who can claim a deduction under 80tta?
80tta can be claimed by the following-
Individual taxpayers and HUF (Hindu undivided family)
NRI with NRO savings account
An entity with a savings account
Is it allowed for NRI to claim deduction under section 80DD?
No. NRIs are not eligible for claiming the tax deduction under section 80DD. Individuals who want to claim deduction under section 80DD needs to be a resident of India.
Can non-residents of India claim deduction under section 80tta?
Yes. NRIs can claim deduction under section 80tta on a savings bank account. NRIs need to have NRO while claiming the deduction.
Can a senior citizen claim a deduction u/s 80TTA?
No. Deductions are not available for a senior citizen under section 80tta.
How much interest is tax-free for senior citizens?
The interest of Rs.50,000 is tax-free for the senior citizen as per the income tax act, of 1961.
How do I claim an exemption under 80TTA?
If you want to claim an exemption under section 80tta then firstly you need to submit gross interest to the head “income from other sources” in your return.