Two sections of Income Tax Act, 1961 always attracts the taxpayers, 80TTA and 80TTB. Every Tax Payer knows that there is certain deduction we can claim with these section but remain confused with the Applicabilities.
Here, in this blog with easy explanation we would try to make it easy to be understood by common taxpayers.
|Applicability||Applicable to Individuals and HUF, except Senior Citizens.||Applicable to Senior Citizens only.|
|Maximum Deduction||Upto Rs. 10,000/- only||Upto Rs. 50,000/-|
|Basis of Deduction||This is interest based deduction.||This is interest based deduction.|
|Interest Covered||Only Saving Account Interest is eligible for deduction.||All types of Interest from all kinds of Deposits are eligible for deduction.|
|Method of implying||First add the interest income in total income then less Interest Amount or Rs. 10,000/- whichever is lower under section 80TTA.||First add the interest income in total income then less Interest Amount or Rs. 50,000/- whichever is lower under section 80TTB.|
|RD & FD Interest||Not Covered, only saving interest will be considered for deduction.||Yes, all interest form all deposits will be considered for deduction upto Rs. 50,000/-|
Still, if there is any confusion, please write us in comment box.