Section 80TTA and 80TTB Deduction FY 2025-26: ₹10,000 Savings Interest, ₹50,000 for Senior Citizens
Section 80TTA allows a deduction of up to ₹10,000 on interest from savings bank accounts for individuals and HUFs below 60. Section 80TTB replaces it for resident senior citizens aged 60 and above, allowing up to ₹50,000 on interest from savings accounts, fixed deposits and recurring deposits with banks, post offices and co-operative banks. Both are available only under the old regime.
Key facts, FY 2025-26
- Section 80TTA
- ₹10,000 on savings account interest, taxpayers below 60
- Section 80TTB
- ₹50,000 on savings, FD and RD interest, resident senior citizens aged 60 and above
- Regime
- Old regime only
- Covered institutions
- Banks, post offices, co-operative banks. Not company FDs, bonds or NBFC deposits
- Not covered
- FD and RD interest for those below 60 (fully taxable)
- Who cannot claim
- NRIs cannot claim 80TTB; firms, LLPs and companies cannot claim either section
How it works
Interest on your savings account is taxable income under the head other sources, however small. Section 80TTA of the Income-tax Act 1961 softens this for taxpayers below 60 by allowing a deduction of up to ₹10,000 a year against savings account interest only. Fixed deposit and recurring deposit interest is not covered and remains fully taxable at your slab rate.
Section 80TTB was introduced for resident senior citizens aged 60 or above. It is broader and larger: up to ₹50,000 a year on interest from savings accounts, fixed deposits and recurring deposits with banks, post offices and co-operative banks. A senior citizen claims 80TTB instead of 80TTA, never both.
The deduction is a floor, not an exemption. You first add the full interest to your income, then deduct up to the limit in Schedule VI-A. If your savings interest is ₹6,000, the 80TTA deduction is ₹6,000, not ₹10,000. Banks deduct TDS on FD interest above ₹50,000 a year, or ₹1,00,000 for senior citizens, so a senior with only interest income below the exemption limit should submit Form 15H to stop the TDS rather than wait for a refund.
The limit applies across all your accounts together, not per bank. Five savings accounts earning ₹4,000 each give ₹20,000 of interest and a deduction of ₹10,000, and the same is true of a senior citizen holding fixed deposits with three banks: the 80TTB cap is ₹50,000 in total. Interest on a joint account is taxed in the hands of the first holder unless the money is shown to belong to someone else. Post office savings account interest has a separate small exemption under section 10(15), ₹3,500 for a single account and ₹7,000 for a joint account, which is claimed before 80TTA and is available under both regimes. Interest on income tax refunds and on loans given to friends is taxable but is not deposit interest, so neither section covers it.
| Section 80TTA | Section 80TTB | |
|---|---|---|
| Who | Individuals and HUFs below 60, including NRIs | Resident individuals aged 60 or above |
| Limit | ₹10,000 | ₹50,000 |
| Interest covered | Savings account only | Savings, FD, RD and post office deposits |
| Institutions | Banks, post office, co-operative banks | Banks, post office, co-operative banks |
| Regime | Old only | Old only |
| Can both be claimed | No | No |
Worked example: Retired teacher aged 66 with deposit income, old regime
- Savings account interest
- ₹9,000
- Bank FD interest
- ₹2,40,000
- Post office MIS interest
- ₹36,000
- Total interest income
- ₹2,85,000
- Deduction under 80TTB
- ₹50,000
- Taxable interest after 80TTB
- ₹2,35,000
- Tax saved at 20% slab plus cess
- ₹10,400
Common mistake: claiming 80TTA on FD interest
Section 80TTA covers savings account interest only. Taxpayers below 60 often deduct ₹10,000 against FD interest and receive a 143(1) intimation adding it back. The AIS now reports savings and FD interest separately, so the mismatch is caught automatically. Under the new regime neither section is available, and interest is taxed in full. A related slip is leaving savings interest out of the return altogether because the bank did not deduct TDS on it; banks never deduct TDS on savings interest, but they do report it, and the AIS shows every rupee.
What to do next
Pull the interest certificate from each bank and check it against the AIS on the e-filing portal, which lists every account and deposit reported against your PAN. Enter the gross interest under income from other sources, then claim 80TTA or 80TTB in Schedule VI-A; the ITR utility picks the right section from your date of birth. Seniors with total income below the exemption limit should file Form 15H with each bank in April so that no TDS is deducted through the year, and anyone whose TDS was deducted anyway should check that it appears in Form 26AS before claiming credit. For a senior citizen deciding between regimes, run the numbers both ways: 80TTB plus the ₹3 lakh senior exemption under the old regime often loses to the new regime's ₹4 lakh exemption and lower slabs once income crosses about ₹8 lakh. If your interest is large and spread across many banks, an expert-assisted return reconciles the AIS line by line.
Sections 80TTA and 80TTB: questions
What is the 80TTA deduction limit for FY 2025-26?
₹10,000 a year on interest from savings accounts with banks, post offices and co-operative banks, for individuals and HUFs below 60 filing under the old regime.
What is the 80TTB limit for senior citizens?
₹50,000 a year on interest from savings accounts, fixed deposits and recurring deposits with banks, post offices and co-operative banks, for resident individuals aged 60 or above under the old regime.
Is FD interest covered under 80TTA?
No. Section 80TTA covers savings account interest only. FD and RD interest is fully taxable for taxpayers below 60. Only senior citizens get FD interest relief, through section 80TTB.
Can I claim 80TTA and 80TTB together?
No. A senior citizen eligible for 80TTB cannot claim 80TTA. Taxpayers below 60 can claim only 80TTA.
Are 80TTA and 80TTB available in the new tax regime?
No. Both deductions are available only under the old regime. Under the new regime all interest income is taxed at slab rates without any deduction.
Can an NRI claim section 80TTB?
No. Section 80TTB is only for resident senior citizens. An NRI can claim section 80TTA on savings account interest, including NRO savings interest, up to ₹10,000.
Is interest on a company fixed deposit or bonds covered?
No. Both sections cover deposits with banks, post offices and co-operative banks only. Interest from company deposits, NBFC deposits, bonds and debentures is fully taxable.
Related sections and forms
- Form 15G and 15HForm 15G and Form 15H are self-declarations under section 197A that tell a bank, post office or company not to deduct TDS on your interest because your tax for the year will be nil. Form 15G is for residents under 60 whose total interest also stays within the basic exemption limit; Form 15H is for residents aged 60 and above with only the nil-tax condition. Both are valid for one financial year and must be filed afresh every April.
- AIS and TISThe Annual Information Statement (AIS) is the department's record of your financial transactions for a year, reported by banks, employers, registrars, depositories and the GST network. The Taxpayer Information Summary (TIS) condenses it into category totals that prefill your ITR. For AY 2026-27, every income line in AIS should either appear in your return or carry your feedback explaining why not.
- Section 80CSection 80C allows a deduction of up to ₹1,50,000 a year from your gross total income for investments and payments such as PPF, EPF, ELSS, life insurance premium, NSC, 5-year tax-saver FD, Sukanya Samriddhi, tuition fees and home loan principal. It is available only under the old tax regime. At the 30% slab the full limit saves ₹46,800 including cess.
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General information for FY 2025-26, not professional advice. Limits and dates change with each Budget; the updated date above is when this page was last checked. Disclaimer