Section 80TTA of the Income Tax Act, 1961 provides a deduction of up to Rs 10,000 on the income earned from interest on savings made in a bank, co-operative society or post office.
It applies to all individuals and HUFs other than senior citizens (those above 60 years) in India. Non-resident Indians can claim a deduction on income from interest on savings bank accounts up to a maximum of Rs 10,000 like resident Indians.
So, NRIs can also avail a deduction under Section 80TTA. It is pertinent to note that NRIs are allowed to open only two types of accounts in India. i.e. NRE and NRO accounts. However, only the NRO savings account holders can claim the benefit of Section 80TTA as interest earned on NRE accounts are tax-free.
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Note: This Post was last updated on June 22, 2023
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