Section 80TTA Deduction: Savings Account Interest (Up to ₹10,000 Limit)

धारा 80TTA बचत खाता ब्याज कर छूट (₹10,000)

Comprehensive guide to Section 80TTA of the Income Tax Act: claiming up to ₹10,000 deduction on interest earned from savings bank accounts, post office savings accounts, and cooperative bank accounts for individual taxpayers under 60 years of age.

Written by: Author Profile

Direct Tax & CA Review Panel

Chartered Accountancy Review Panel • Senior Direct Tax Review Desk

Reviewed & Fact-Checked by: Technical Review Panel

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Tax Litigation & Legal Review Panel • Tax Appeal & Procedure Review Desk

Published: 1st April 2026•Last Updated: 15th August 2026•Last Reviewed: 15th August 2026

Key Statutory Highlights (FY 2026-27 (AY 2027-28))

Deduction limit: Up to ₹10,000 or actual savings account interest earned in the financial year, whichever is lower.

Eligible Accounts: Savings accounts held in commercial banks, cooperative banks, and post offices.

Ineligible Interest: Interest from Fixed Deposits (FDs), Recurring Deposits (RDs), and corporate debentures is NOT eligible under Section 80TTA.

Applicability: Available only to Individuals (<60 years) and HUFs under the Old Tax Regime.

Reporting requirement: The gross savings interest must first be included under 'Income from Other Sources' and then deducted under Section 80TTA in Schedule VIA.

Who is Eligible & When Does it Apply?

Applicability #1

Individual taxpayers (under 60 years) and Hindu Undivided Families (HUFs).

Step-by-Step Procedure & Compliance Roadmap

Aggregate Savings Bank Interest from AIS/Passbooks

Collate annual interest credits across all your savings bank accounts.

Declare in ITR under Other Sources

Add total savings interest under Gross Total Income.

Claim up to ₹10,000 under 80TTA in Schedule VIA

Deduct the eligible amount under the Old Tax Regime.

Mandatory Documents Checklist

Bank Passbooks, Savings Account Annual Interest Certificates, AIS Statement

Common Mistakes & Compliance Risks to Avoid

•Trying to claim Fixed Deposit (FD) interest under Section 80TTA (FD interest is not eligible).

•Senior citizens claiming 80TTA instead of the higher ₹50,000 benefit under Section 80TTB.

Frequently Asked Questions

Can senior citizens claim Section 80TTA?

No. Senior citizens (aged 60 and above) are not eligible for Section 80TTA because they are entitled to the higher ₹50,000 deduction under Section 80TTB, which covers both savings and FD interest.

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🛡️ Educational Disclaimer: FinSetu India is an independent educational guidance and calculation platform. Content is published for general citizen awareness based on applicable laws as of FY 2026-27 (AY 2027-28). We do not provide personalized legal/tax advice or file returns directly. Verify current applicable rules on official portals or consult a qualified Chartered Accountant / Tax Lawyer.