Section 80TTA vs 80TTB: Savings Account & Deposit Interest Deduction Explained
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
| 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 |
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.