Understanding Section 80TTA: How Much Can You Deduct for Savings Account Interest in 2015-16?

Deduction for Interest on Savings Account Deposits under Section 80TTA

Please explain the deduction in respect of interest on deposits in savings accounts under Section 80TTA for the assessment year 2015-16. What amount should be deducted?

Section 80TTA was introduced with effect from Assessment Year (A.Y.) 2013-14 to provide a deduction to an individual or a Hindu Undivided Family in respect of interest received on deposits (not being time deposits) in a savings account held with banks, cooperative banks, and the post office. The deduction is limited to Rs 10,000 or the actual interest received, whichever is lower.

Regards,
Ashish Thakkar