INTEREST ON SAVINGS BANK/OTHER

[janakiram g]

Sir/Madam

Kindly clarify me the following

1. Exemption limit for Interest on Savings bank a/c/ Fixed Deposit

2. I am working for Insurance Co. We need to settle Motor Third Party Claims which includes Interest Component also as a part of total Claim settlement. If interest component exceeds ₹ 50,000/-, we deduct tax on interest amount. It is mandatory that cheques should be issued in favour Principal Judge. But claimant/s may be different. E-filing of TDS return will be done in the name of Principal Judge and form 16A generated in the name of Principal Judge When court releases payment to Claimant, he may be interested in claiming TDS amount deducted on interest. In such a case, whether it is in order to issue Form 16A prepared in the name of Claimant manually.

[Deepak Aggarwal]

Dear Sir,

1. Under section 80TTA, exemption upto ₹ 10,000 available on interest on savings bank accounts deposits.

2. As per my understanding, after introduction of Traces system, no manual TDS credit is allowed unless it is reflected on Traces site. You look as per these and to get manually Form 16A has no use in my opinion.

Thanks

AI Summary

Savings interest exemption under section 80TTA; TDS credit requires TRACES reflection, manual Form 16A ineffective. Interest on savings bank accounts qualifies for exemption under Section 80TTA. When TDS is deducted on interest paid as part of third party claim settlements where payment and payee names differ, TDS credit must be recorded via the TRACES system; manual issuance of Form 16A or manual TDS credit is ineffective unless reflected on TRACES.