Interest earned on your savings account and fixed deposits is taxable — but two separate sections offer relief depending on your age. Section 80TTA gives non-senior citizens a ₹10,000 deduction on savings account interest only. Section 80TTB gives senior citizens a much larger ₹50,000 deduction covering savings accounts, fixed deposits, and recurring deposits. Mixing these up is one of the most common ITR errors.
Section 80TTA: For Individuals Below 60
Section 80TTA allows a deduction of up to ₹10,000 on interest earned from savings bank accounts (held with banks, co-operative societies, or post offices) for individuals and HUFs who are not senior citizens. Importantly, this deduction does NOT cover:
- Fixed deposit (FD) interest
- Recurring deposit (RD) interest
- Interest from corporate bonds or debentures
Only savings account interest qualifies, and only up to ₹10,000 — any savings interest above this amount is fully taxable under 'Income from Other Sources'.
Section 80TTB: For Senior Citizens (60+)
Section 80TTB is a more generous provision available only to senior citizens (age 60 and above). It allows a deduction of up to ₹50,000 on interest income from:
- Savings bank accounts
- Fixed deposits (FDs)
- Recurring deposits (RDs)
- Any deposits with banks, co-operative banks, or post offices
⚠ A senior citizen cannot claim BOTH 80TTA and 80TTB. If you are 60 or above, Section 80TTB applies (and Section 80TTA explicitly excludes those eligible for 80TTB). You get the ₹50,000 combined limit under 80TTB — not ₹10,000 under 80TTA plus ₹50,000 under 80TTB.
| Feature | Section 80TTA | Section 80TTB |
|---|
| Eligible taxpayers | Individuals/HUF below 60 | Resident senior citizens (60+) |
| Maximum deduction | ₹10,000 | ₹50,000 |
| Savings account interest | ✓ | ✓ |
| FD/RD interest | ✗ | ✓ |
| New tax regime availability | ✗ Not available | ✗ Not available |
ExampleMrs. Sharma, aged 65, earns ₹28,000 from her savings account and ₹40,000 from FDs in a year — total interest income of ₹68,000. Under Section 80TTB, she can deduct ₹50,000 (the maximum), leaving ₹18,000 taxable under 'Income from Other Sources'. If she were 55, only the savings account interest (₹28,000) would be eligible for 80TTA, capped at ₹10,000 — and the entire ₹40,000 FD interest plus ₹18,000 of savings interest (₹58,000 total) would be taxable.
TDS on Interest Income
Banks deduct TDS at 10% on FD/RD interest if it exceeds ₹40,000 in a year (₹50,000 for senior citizens) under Section 194A. You can submit Form 15G/15H to avoid TDS if your total income is below the taxable threshold — but note that TDS exemption via Form 15G/15H is separate from claiming 80TTA/80TTB; even if TDS is deducted, you still claim the deduction while filing your ITR.
Old Regime vs New Regime
Both Section 80TTA and 80TTB are not available under the new tax regime. If you choose the new regime, your full savings account and FD/RD interest is taxable at your slab rate, with no ₹10,000 or ₹50,000 deduction.
Frequently Asked Questions
I'm 62 years old — can I claim ₹10,000 under 80TTA for savings interest and ₹50,000 under 80TTB for FD interest separately? ▼
No. Once you qualify as a senior citizen (age 60 or above), Section 80TTA explicitly does not apply to you — Section 80TTB takes over entirely. Under 80TTB, you get a single combined deduction of up to ₹50,000 covering savings account interest, FD interest, and RD interest together. You cannot stack the ₹10,000 from 80TTA on top of the ₹50,000 from 80TTB.
Does Section 80TTA cover interest from fixed deposits? ▼
No. Section 80TTA covers only interest earned on savings bank accounts (with banks, co-operative societies engaged in banking, or post offices). It explicitly excludes interest from fixed deposits, recurring deposits, and any time deposits. FD/RD interest for non-senior citizens is fully taxable under 'Income from Other Sources' with no deduction under 80TTA — only senior citizens get FD/RD interest relief, via Section 80TTB.
Are Section 80TTA and 80TTB available under the new tax regime? ▼
No. Both Section 80TTA (₹10,000 deduction for non-seniors on savings account interest) and Section 80TTB (₹50,000 deduction for senior citizens on savings/FD/RD interest) are Chapter VI-A deductions that are not available under the new tax regime (Section 115BAC). Under the new regime, all interest income from savings accounts and deposits is fully taxable at your applicable slab rate.