Can I avail income tax benefit on curiosity?

I am a senior citizen and have made fastened deposit with HDFC LTD (NOT HDFC BANK). Please let me know whether or not the curiosity income acquired from HDFC Limited is eligible for exemption inside Rs. 50000 or not.

As per Section 80TTB an individual, who has accomplished 60 years and who’s a resident of India for income tax functions, is entitled to say a deduction of Rs. 50,000/- in respect of curiosity earned by him from Post office, Bank and Cooperative Societies throughout the year.

This deduction is offered in respect of curiosity acquired from deposits of any nature made with these entities. So one can declare this deduction in respect of saving financial institution curiosity, curiosity on fastened deposits, curiosity on recurring deposits. Even you’ll be able to declare this deduction for curiosity earned on deposits made below Senior Citizen Saving Scheme below this Section inside this total restrict of Rs. 50,000/-.

Since this deduction is offered for curiosity acquired from specified entities and since HDFC Limited doesn’t fall in these classes, you can not declare this deduction. Had the deposits been with HDFC financial institution and never HDFC restricted, you’ll have been entitled to this deduction below Section 80TTB for curiosity acquired from HDFC financial institution. Since curiosity below Section 80TTB is exempt upto Rs. 50,000 is exempt, the resident senior residents take pleasure in the next restrict of Rs. 50,000/- for the aim of TDS on curiosity below Section 194A.

Balwant Jain is a tax and funding skilled and might be reached at [email protected] and @jainbalwant on his twitter deal with.

Subscribe to Mint Newsletters

* Enter a legitimate e mail

* Thank you for subscribing to our publication.

Never miss a narrative! Stay linked and knowledgeable with Mint.
our App Now!!

Back to top button