Finance Bill 2012 proposes to introduce new deduction in respect of interest received on deposits in saving account.
Deduction under new section 80TTA will be available to Individual and HUF only
Maximum Deduction will be Rs.10,000/-
Deduction will be allowed on deposits in saving account (not time/fixed term deposits) with
- Co-operative Society engaged in carrying on the business of banking, including a co-operative land mortgage bank or co-operative land development bank,
- Post office Saving Account. Deposit in other scheme of Post office will not be allowed
The deduction u/s 80TTA will be available from financial year 2012-13