Bank Interest Deduction — 80TTA, 80TTB and Section 153
Reviewed by Finin2min Editorial Desk · Last reviewed 11 August 2026
Calculate ₹10,000 savings-interest or ₹50,000 senior-citizen deposit-interest deduction under old-regime rules.
Calculate deduction for bank and post-office interest
Interest deduction result
Deduction reduces taxable income; it is separate from the bank’s TDS threshold.
Eligible interest
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Deduction
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Measure
Amount / reference
Interest not eligible under selected category
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Statutory ceiling
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Legal reference
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How This Is Calculated
Non-senior individuals and HUFs can deduct up to ₹10,000 under Section 80TTA, limited to savings account interest only. Senior citizens instead use Section 80TTB, deducting up to ₹50,000 covering interest from all deposits — savings, fixed and recurring. These deductions are mutually exclusive by category and available only under the old tax regime.
Frequently Asked Questions
Can I claim both 80TTA and 80TTB?
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No — 80TTA applies to non-senior individuals/HUFs (savings interest only, ₹10,000 cap) and 80TTB applies to senior citizens (all deposit interest, ₹50,000 cap). Which one applies depends on your age category, not a free choice between the two.
Does 80TTA cover fixed deposit interest?
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No. Section 80TTA covers only savings account interest — FD and RD interest don't qualify under 80TTA for non-senior taxpayers, though they do qualify under 80TTB for senior citizens.
Are these deductions available under the new tax regime?
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No. Both Section 80TTA and 80TTB are old-regime-only deductions — deposit interest is fully taxable with no special deduction under the new tax regime.
Methodology, assumptions and sources
Scope: Computes the deduction available on savings and deposit interest under Section 80TTA (for individuals below 60) and Section 80TTB (for senior citizens), applicable only under the old tax regime.
Calculation logic
Section 80TTA: deduction = lower of (savings bank interest earned, ₹10,000), available only to individuals/HUFs below 60 years, and only for savings account interest (not FD/RD interest).
Section 80TTB: deduction = lower of (total interest from deposits, including savings, FD and RD, ₹50,000), available only to senior citizens (60 years and above), in lieu of (not in addition to) Section 80TTA.
Apply the applicable section based on the age entered, and compute the resulting deduction from gross interest income.
Inputs and assumptions
Both deductions are available only under the old tax regime; the new regime does not permit either deduction, which the calculator reflects.
Section 80TTB is a broader deduction (covering all deposit interest, not just savings) but is mutually exclusive with 80TTA — a senior citizen cannot claim both.
Exclusions and edge cases
Interest from deposits with entities other than banks/co-operative banks/post office (as specified in the section) does not qualify — the calculator assumes the interest entered is from a qualifying institution.
Does not compute TDS on the interest itself — see the Savings and Deposit Interest Tax calculator for the full tax computation.