ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Key Takeaways. Any interest earned on a savings account is taxable income. Interest from a savings account is considered an addition to your taxable income for the year in which it is paid.

Detailed explanation-2: -Who Is Eligible to Claim Tax Deductions Under Section 80TTA? Deduction under section 80TTA is applicable for individuals whose total income is above the taxable slab. For example, if your income is ₹ 2, 00, 000 and specific earning from interest is ₹ 50, 000 in a fiscal year.

Detailed explanation-3: -Section 80TTA and Section 80TTB are two key sections of the Income Tax Act, 1961 that provide tax deduction benefit on interest income earned from various types of bank deposits.

Detailed explanation-4: -How to Claim Deduction Under Section 80TTA. First, add your total interest income under the head ‘Income from Other Sources’ in your return. Calculate your gross total income for the financial year from all the income heads and then show it as a deduction under Section 80TTA.