Section 80TTA lets individuals and HUFs deduct up to ₹10,000 per year of interest earned on savings bank accounts. It does not cover FD or RD interest. Senior citizens have a separate, larger benefit under Section 80TTB.

Section 80TTA

Section 80TTA lets individuals and HUFs deduct up to ₹10,000 per year of interest earned on savings bank accounts. It does not cover FD or RD interest. Senior citizens have a separate, larger benefit under Section 80TTB.

What is Section 80TTA?

Section 80TTA applies only to interest from savings accounts held with banks, co-operative banks, or post offices. The cap is ₹10,000 a year, across all such accounts combined. Fixed deposit interest, recurring deposit interest, and corporate bond interest are not eligible. For senior citizens (60+), 80TTA does not apply. Instead, they get Section 80TTB, which covers interest from savings, FDs, and RDs up to ₹50,000. Even though banks deduct TDS on interest above ₹40,000 (₹50,000 for seniors), 80TTA is claimed independently while computing taxable income. Like other Chapter VI-A deductions, 80TTA is available only under the old tax regime. From FY 2023-24 onwards, the new regime does not allow 80TTA at all.

Example

Neha earns ₹14,500 in savings bank interest in FY 2025-26. She can claim ₹10,000 under 80TTA. The remaining ₹4,500 gets added to her total income and taxed at her slab rate.

How Section 80TTA is used

Most employees miss 80TTA because banks do not show it on the salary side. Payroll teams sometimes add a reminder in the December tax declaration window so people can claim it before the year ends.

Section 80TTA FAQs

Does FD interest qualify under 80TTA?

No. Only savings bank interest qualifies. FD and RD interest are taxable in full for non-seniors.

What if I am a senior citizen?

Seniors use Section 80TTB instead, which covers savings, FD, and RD interest up to ₹50,000 a year.

Can I claim 80TTA in the new tax regime?

No. 80TTA is available only under the old regime. The new regime does not allow it.