Deduction in respect of interest on deposits in saving accounts - (New) Section 153 / (Old) Section 80TTA

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.... assessee who is-- • (a) an individual, not being a senior citizen; or • (b) a Hindu undivided family, • shall be allowed a deduction from the gross total income where it includes interest income on any deposit in a savings account other than time deposit. • subject to conditions specified in section 153(2)(a), Eligible Depositories Interes....

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....€¢ Where the income is derived from any deposit in a savings account held by, or on behalf of, • a firm, • an association of persons or • a body of individuals, • no deduction shall be allowed under this section in respect of such income in computing the total income of • any partner of the firm or • any member of suc....

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.... with: • (a) A banking company governed by the Banking Regulation Act, 1949 (including banks and banking institutions referred to in section 51 of that Act); • (b) A co-operative society engaged in the business of banking (including co-operative land mortgage banks or co-operative land development banks); or • (c) A Post Office as defined under the Indian Pos....

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....A is the explicit exclusion of "time deposits" from the ambit of deduction. The Explanation to the section defines "time deposits" as deposits repayable on expiry of fixed periods. This would include fixed deposits, recurring deposits, and any other deposit where the repayment is not on demand but after a specified tenure. Ineligibility for Certain Entities Section 80TTA(2) provides that whe....