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Section 80TTA — ₹10,000 Deduction on Savings Account Interest (2026-27)
Updated: 3 June 2026 | Income-tax Act, 2025 | Verified against CBDT notifications
Section 80TTA allows individuals and HUFs to deduct up to ₹10,000 from savings account interest under the old tax regime. It covers savings accounts with banks, cooperative banks, and post offices only — not FD or RD interest. Senior citizens (60+) should claim Section 80TTB (₹50,000 limit) instead; 80TTA does not apply to them.
₹10,000
Max 80TTA deduction — covers savings accounts only (not FD/RD) Combined cap across all savings accounts. Old regime only. Senior citizens get ₹50,000 via Section 80TTB.
⚠
Not available in new regime. If you file under the new tax regime, 80TTA deduction is not allowed. Your entire savings bank interest is included in taxable income at the applicable slab rate.
80TTA vs 80TTB — Complete Comparison
Feature
Section 80TTA
Section 80TTB
Eligible Person
Individual & HUF (below 60 years)
Senior Citizen (60+ years) only
Deduction Limit
Up to ₹10,000
Up to ₹50,000
Savings A/C Interest
Yes — covered
Yes — covered
FD Interest
No — not covered
Yes — covered
RD Interest
No — not covered
Yes — covered
Post Office Deposits
Savings — yes; TD — no
All deposits — yes
Cooperative Bank Interest
Savings — yes
Yes — all types
NBFC / Company FD
No
No
Tax Regime
Old regime only
Old regime only
Introduced
Finance Act 2012
Finance Act 2018
What Interest is Eligible Under 80TTA?
ELIGIBLE
Savings Bank Account — Scheduled Commercial Banks
Interest earned on savings accounts (not fixed deposits) held with any scheduled commercial bank — public sector, private sector, small finance banks, etc.
ELIGIBLE
Savings Account — Cooperative Bank or Society
Interest from savings accounts maintained with cooperative banks or cooperative societies that carry on the business of banking.
ELIGIBLE
Post Office Savings Account
Interest earned on Post Office Savings Account (POSA). Note: the first ₹3,500 (single account) or ₹7,000 (joint account) of Post Office savings interest is separately exempt under Section 10(15)(i), so it may not even need to be claimed under 80TTA.
NOT ELIGIBLE
Fixed Deposit, Recurring Deposit, Time Deposits
Interest from FD, RD, or term deposits is not eligible for 80TTA — not even with banks. It is fully taxable at slab rate. Senior citizens can use 80TTB for FD/RD interest.
NOT ELIGIBLE
NBFC or Company Fixed Deposits
Interest from deposits with Non-Banking Financial Companies (NBFCs) or corporate fixed deposits does not qualify for 80TTA or 80TTB. It is taxable as "Income from Other Sources" at slab rate.
How to Claim 80TTA in Your ITR
In your ITR, first declare the full savings account interest income under "Income from Other Sources." Then claim the 80TTA deduction (up to ₹10,000) under Chapter VI-A deductions. Only the amount exceeding ₹10,000 will be included in your taxable income. Many taxpayers mistakenly skip declaring savings interest altogether — which is incorrect. Always declare first, then deduct.
Act mapping note: Section 80TTA and 80TTB of the Income Tax Act, 1961 are mapped to corresponding provisions in the Income-tax Act, 2025 (effective Tax Year 2026-27). The deduction limits and eligibility criteria remain unchanged for Tax Year 2026-27.
Frequently Asked Questions
What is the difference between Section 80TTA and Section 80TTB?
Section 80TTA gives individuals and HUFs (below 60 years) a deduction of up to ₹10,000 on savings account interest only — not FD or RD interest. Section 80TTB is exclusively for senior citizens (60+ years) and provides a much larger deduction of ₹50,000 on ALL interest income — savings accounts, fixed deposits, recurring deposits, and post office deposits. Senior citizens should always claim 80TTB (not 80TTA) since 80TTB is more beneficial and the two sections cannot be claimed together.
Can I claim 80TTA on interest from multiple savings accounts?
Yes. The ₹10,000 deduction under Section 80TTA is the total cap across all your savings accounts combined — not ₹10,000 per account. If you earn ₹6,000 from Bank A savings account and ₹7,000 from Bank B savings account, your total savings interest is ₹13,000. You can claim ₹10,000 as 80TTA deduction; the remaining ₹3,000 is taxable at your slab rate.
Is 80TTA available for joint savings account holders?
For a joint savings account, the interest is typically declared by the primary account holder, and the 80TTA deduction is claimed by that person. If the account is held jointly and interest is split proportionately (as per agreement or banking records), each holder can claim 80TTA deduction on their respective share of interest, subject to their individual ₹10,000 cap. In practice, most joint accounts have one primary holder who claims the deduction.
Is interest on NRE savings account eligible for 80TTA?
No. Interest on NRE (Non-Resident External) savings accounts is completely exempt from income tax in India under Section 10(4) — it is not even included in taxable income. Since it is already exempt, there is no need to claim 80TTA on NRE interest. Interest on NRO (Non-Resident Ordinary) savings accounts is taxable, and NRIs can claim 80TTA deduction on NRO savings interest subject to the ₹10,000 limit.
Is Section 80TTA available under the new tax regime?
No. Section 80TTA is not available under the new tax regime. If you opt for the new regime, you cannot claim any deduction on savings bank interest — the entire savings account interest is taxable at your applicable slab rate. The new regime offers lower slab rates in exchange for foregoing most deductions including 80TTA, 80C, 80D, and HRA. If your savings interest income is significant, factor this into your old vs new regime comparison.
