Section 80TTA lets individuals and HUFs below 60 deduct up to Rs10,000 of interest earned on savings bank accounts (banks, cooperative banks and post offices) — not FD or RD interest. It is available only under the old tax regime. Senior citizens (60+) should instead claim Section 80TTB, which gives a larger Rs50,000 deduction covering FD and RD interest too.
Who Can Claim & What It Covers
Section 80TTA of the Income-tax Act, 1961 is a Chapter VI-A deduction for resident and non-resident individuals and HUFs under 60 years. The Rs10,000 cap is the combined limit across all savings accounts — not per account.
| Interest source | Eligible? | Notes |
|---|---|---|
| Savings account — commercial bank | Yes | Public, private & small finance banks |
| Savings account — cooperative bank / society | Yes | Society carrying on banking business |
| Post Office Savings Account | Yes | First Rs3,500 single / Rs7,000 joint also exempt u/s 10(15)(i) |
| NRO savings account | Yes | Taxable; NRIs may claim within Rs10,000 |
| Fixed deposit (FD) interest | No | Taxable at slab; seniors use 80TTB |
| Recurring deposit (RD) interest | No | Not a savings account |
| Post Office / bank time deposit | No | Term deposit, not savings |
| NBFC / company fixed deposit | No | Ineligible under both 80TTA & 80TTB |
| NRE savings account | N/A | Already fully exempt u/s 10(4) — no 80TTA needed |
The Rs10,000 ceiling is the aggregate across every savings account you hold, not a per-account limit.
Report your full savings interest under "Income from Other Sources", then claim 80TTA (up to Rs10,000) under Chapter VI-A. Skipping the declaration entirely is a common error — the interest shows in your AIS and can trigger a mismatch notice.
80TTA vs 80TTB — Which One Applies?
Age decides it. If you are under 60, you use 80TTA (Rs10,000, savings only). If you are a senior citizen (60+), you use Section 80TTB — a far bigger Rs50,000 deduction that also covers FD and RD interest. The two cannot be claimed together.
Section 80TTA — under 60
- Individuals & HUF below 60 years
- Savings account interest only
- FD / RD interest not covered
- Combined Rs10,000 cap
- Old regime only
Section 80TTB — senior citizens
- Resident individuals 60 years and above
- Savings + FD + RD + post-office interest
- Much wider coverage
- Combined Rs50,000 cap
- Old regime only
| Feature | Section 80TTA | Section 80TTB |
|---|---|---|
| Eligible person | Individual & HUF (< 60) | Resident senior citizen (60+) |
| Deduction limit | Rs10,000 | Rs50,000 |
| Savings A/c interest | Yes | Yes |
| FD interest | No | Yes |
| RD interest | No | Yes |
| Tax regime | Old only | Old only |
| Introduced by | Finance Act 2012 | Finance Act 2018 |
A senior citizen should always claim 80TTB, never 80TTA — 80TTB is larger and broader.
Not sure whether 80TTA or 80TTB gives you a bigger deduction?
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80TTA Is Not Available in the New Regime
From AY 2024-25 the new tax regime u/s 115BAC is the default. Under it, 80TTA (and 80TTB) cannot be claimed — your entire savings interest is taxed at slab. Chapter VI-A savings-interest deductions survive only if you actively opt for the old regime. In the new regime the trade-off is lower slabs plus a Rs75,000 standard deduction for salaried and a rebate u/s 87A up to Rs12 lakh taxable income.
How the Rs10,000 Deduction Works
Old regime — savings interest Rs13,000
New regime — same Rs13,000
In the old regime only the Rs3,000 above the cap is taxed at your slab rate. In the new regime the full Rs13,000 is taxable because 80TTA is disallowed — factor this into your regime choice with an income tax calculator.
If your only "extra" income is modest savings interest, the Rs10,000 deduction rarely outweighs the lower slabs and higher 87A rebate of the new regime. Compare both before you file — the deduction is not a reason to stay on the old regime by itself.
How to Claim 80TTA in Your ITR
- 1Total savings interestAdd interest from every savings A/c
- 2Report as other incomeUnder "Income from Other Sources"
- 3Claim 80TTAChapter VI-A, up to Rs10,000
- 4Match with AISReconcile against AIS / 26AS
- Confirm you are under 60 (else use 80TTB)
- You are filing under the old regime
- Add interest from all savings accounts
- Exclude FD, RD and time-deposit interest
- Cap the deduction at Rs10,000
- Cross-check the figure with your AIS
The Income-tax Act, 2025 (effective from AY 2026-27) re-numbers and consolidates the Chapter VI-A deductions, including 80TTA and 80TTB. The Rs10,000 / Rs50,000 limits, the savings-only scope and the old-regime restriction are unchanged — verify the exact clause on the portal before filing.
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- Section 80TTA / 80TTB, Income-tax Act 1961 (Chapter VI-A)
- Post Office savings exemption: Section 10(15)(i)
- NRE exemption: Section 10(4); new regime: Section 115BAC
Disclaimer: This guide is general information based on the law and notifications in force when it was last updated. It is not professional advice for your case — rates, thresholds and due dates change, so check the current position with the official source before you act on it.