Interest on savings a/c deposits held for a firm won’t get tax deduction

Suresh Surana : Tue May 01 2012, 22:00 hrs

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I am a commission agent. Can I file my I-T return by opting for the presumptive taxation scheme under the I-T Act, 1961 for FY12?

— Nimish Manekshaw

As per the amendment proposed in the Finance Bill 2012, presumptive income scheme under Section 44AD of the I-T Act, 1961, shall not be applicable to a person earning income in the nature of commission or brokerage. This amendment is effective retrospectively from FY11. As such, you can't opt for the presumptive taxation scheme.

I donated R15,000 in cash to a charitable institution on April 15, 2012. How much deduction would I get for such a donation while computing my taxable income for FY13?

— AV Singh

Section 80G contains provisions for allowing deduction in respect of eligible donations. The Finance Bill 2012 has proposed to amend Section 80G to provide that if donation exceeding R10,000 is made in cash, the entire amount shall not be eligible for deduction. This amendment is effective from AY 2013-14, i.e., FY13 and, hence, you may not get any deduction under Section 80G.

I hold a savings bank account with a scheduled bank on behalf of a firm in which I am a partner. Can I get deduction under Section 80TTA on interest on such an account? How much maximum deduction is available for interest received on my own savings account?

— Surender Kumar

The Finance Bill 2012 has proposed to insert a new Section 80TTA, wherein it has been specifically provided that in computing the total income of any partner of the firm, no deduction shall be allowed under this Section in respect of interest on deposits in saving accounts held by or on behalf of a firm. However, as far as your own savings account is concerned, you shall be eligible to claim an aggregate deduction of up to R10,000 under Section 80TTA.

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