Deduction u/s.80TTA in respect of Deposits in Saving Account

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

1. Banks,
2. Co-operative Society engaged in carrying on the business of banking, including a co-operative land mortgage bank or co-operative land development bank,
3. Post office Saving Account. Deposit in other scheme of Post office will not be allowed

Where saving account is held in name of Individual on behalf of a firm, association of persons or body of individual no deduction shall be allowed to the partner of member of association or body of individual

The deduction u/s 80TTA will be available from financial year 2012-13.