Under Section 80TTA of the Income Tax Act, 1961, you are allowed to claim a deduction on your savings account deposits. It allows a deduction of up to ₹10,000 on savings account interest income. To be eligible, these accounts must be held in a cooperative society, bank, or post office.


This section has been a part of the Finance Bill since 2013 and has been providing tax-relief to taxpayers since. The Indian Government has come up with such tax benefits on basic savings accounts to encourage citizens to make small savings.

Features of Section 80TTA Deductions

Below mentioned are a few features of Section 80TTA:

  • Eligible persons can own several savings accounts with different banks

  • Total interest amount of all accounts should not exceed ₹10,000 

  • Deductions u/s 80TTA is beyond the deduction of ₹1.50 Lakhs u/s 80C

  • Section 80TTA is not applicable if the gross total income is below the taxable limit

Eligibility Criteria for Claiming Deductions u/s 80TTA

The deductions u/s 80TTA can be claimed by the below persons:

  • Hindu Undivided Family (HUF) and individuals 

  • Non-residents of India who own Non-resident Ordinary (NRO) savings accounts

  • Entities with savings account at eligible financial institutions

Exceptions Under Section 80TTA

Below mentioned are a few exclusions under Section 80TTA:

  • Section 80TTA is not applicable if the gross total income is below the taxable limit

  • Senior citizens are not eligible for claiming deductions 


The tax deduction under this section are not applicable to the following deposits:

  • Term Deposits

  • Fixed Deposits

  • Recurring Deposits

  • Deposits from Non-banking Financial Companies (NBFCs)

  • Non-resident External (NRE) accounts

How to Apply for Deduction Under Section 80TTA

Here's how you can apply for deductions under Section 80TTA:

1. Calculate Eligible Deduction

Determine the total interest income earned on your savings accounts during the financial year. If your interest income is less than or equal to ₹10,000, you can claim the entire amount as a deduction.

2. Prepare Relevant Documents

Keep all relevant documents related to your savings account and the interest earned. These documents may include bank statements, passbooks, and interest certificates provided by the bank.

3. File Income Tax Return

When filing your income tax return, report your total interest income under the head "Income from Other Sources" in the appropriate ITR form.

4. Submit Proof if Required

The income tax department may ask for proof of your interest income and the deduction claimed. It's essential to keep the supporting documents handy in case they are required for verification.

5. Verify and Submit

Review your income tax return for accuracy and completeness. Once satisfied, submit the return to the income tax department. If you are filing the return online, you may need to e-verify it using Aadhaar OTP, net banking, or other available methods.


Ensure that you stay updated with any changes in tax laws and consult with a tax professional if needed.


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Difference Between Sections 80TTA and 80TTB

Since it’s important to know about the differences between the provisions of sections 80TTA and 80TTB, here’s a table outlining the same: 



Section 80TTA

Section 80TTB

Eligibility Criteria 

Hindu Undivided Family (HUF) and  individuals  

Senior citizens aged over 60 years

Applicable Instruments 

Savings accounts and NRO accounts

Savings bank accounts and fixed deposits  

Exemption Limit 

Up to ₹10,000 / year

Up to ₹50,000 / year


The purpose of Section 80TTA is to promote improved financial management. As a result, it saves people from having to worry about including insignificant interest amounts when submitting their tax returns. This helps them avoid paying tax on income from modest deposits.


Is it compulsory that I reveal the interest amount that I earn on my savings account balance?

Yes. As per the Income Tax Act, individuals who are filing ITR must disclose certain details pertaining to the interest amount earned during the filing period. Additionally, they must pay the applicable taxes.

Is section 80TTA of the Income Tax Act applicable to the current financial year?

Yes, the section 80TTA of the Income Tax Act is applicable to the current financial year, i.e FY 2022-23.

What are the consequences of not complying with the rules of disclosing all the information regarding my interest amount earned on my savings account deposits?

You will have to pay a penalty for non-compliance. Which means, you will have to pay the required taxes along with the interest amount.

Who is eligible for claiming the tax deductions under Section 80TTA?

Hindu undivided families and Individuals can claim tax deductions u/s 80TTA.

Can the tax be deducted under Section 80TTA if I earn interest income from capital gains or house property?

No. You cannot claim any tax deduction u/s 80TTA if you earn an interest income from your house property or capital gains.

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