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.
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.
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|
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.
- Any interest earned from the FD (fixed deposit)
- Interest earned from the RD (recurring deposits)
- Any interest gained from any other deposit.