{"id":7311,"date":"2025-07-02T11:18:07","date_gmt":"2025-07-02T11:18:07","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/?post_type=glossary&#038;p=7311"},"modified":"2025-07-02T11:18:08","modified_gmt":"2025-07-02T11:18:08","slug":"section-80tta","status":"publish","type":"glossary","link":"https:\/\/lemonn.co.in\/blog\/glossary\/section-80tta\/","title":{"rendered":"Section 80TTA"},"content":{"rendered":"<p><a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/section-80tta\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Section 80TTA<\/a> of the <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/income-tax-act\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Income Tax Act<\/a>, 1961, offers a <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/tax\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>tax<\/a> deduction on interest earned from savings accounts, providing relief to individuals and Hindu Undivided Families (HUFs). Here&rsquo;s a comprehensive guide to understanding this provision:<\/p>\n\n\n\n<h2 id=\"what-is-section-80tta\" class=\"wp-block-heading\">What is Section 80TTA?<\/h2>\n\n\n\n<p>Introduced in the Finance Act of 2013, Section 80TTA allows individuals and HUFs to claim a deduction of up to &#x20B9;10,000 per financial year on interest income earned from savings accounts held with:(<a href=\"https:\/\/www.taxbuddy.com\/blog\/section-80tta-deduction-for-interest-on-saving-accounts?utm_source=chatgpt.com\" rel=\"nofollow noopener\" target=\"_blank\">taxbuddy.com<\/a>)<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Banks<\/li>\n\n\n\n<li>Cooperative societies engaged in banking<\/li>\n\n\n\n<li>Post offices<\/li>\n<\/ul>\n\n\n\n<p>This deduction is over and above the &#x20B9;1.5 lakh limit under <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/section-80c\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Section 80C<\/a>.<\/p>\n\n\n\n<h2 id=\"eligibility-criteria\" class=\"wp-block-heading\">Eligibility Criteria<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Who Can Claim<\/strong>: Individuals (below 60 years) and HUFs.<\/li>\n\n\n\n<li><strong>NRIs<\/strong>: Eligible only if they have Non-Resident Ordinary (NRO) savings accounts. Interest from Non-Resident External (NRE) accounts is tax-exempt and doesn&#x2019;t qualify.<\/li>\n\n\n\n<li><strong>Senior Citizens<\/strong>: Not eligible under Section 80TTA. Instead, they can claim deductions up to &#x20B9;50,000 under <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/section-80ttb\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Section 80TTB<\/a>.<\/li>\n<\/ul>\n\n\n\n<h2 id=\"ineligible-interest-incomes\" class=\"wp-block-heading\">Ineligible Interest Incomes<\/h2>\n\n\n\n<p>Interest earned from the following sources does <strong>not<\/strong> qualify for deduction under Section 80TTA:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/fixed-deposit\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Fixed Deposit<\/a>s (FDs)<\/li>\n\n\n\n<li>Recurring Deposits (RDs)<\/li>\n\n\n\n<li>Time deposits<\/li>\n\n\n\n<li>Corporate <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/bonds\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>bonds<\/a> and debentures<\/li>\n\n\n\n<li>Interest from lending businesses<\/li>\n<\/ul>\n\n\n\n<h2 id=\"deduction-limit\" class=\"wp-block-heading\">Deduction Limit<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Maximum Deduction<\/strong>: &#x20B9;10,000 per financial year.<\/li>\n\n\n\n<li><strong>Multiple Accounts<\/strong>: If you have multiple savings accounts, the total interest from all accounts is aggregated. If the combined interest exceeds &#x20B9;10,000, only &#x20B9;10,000 is deductible; the excess is taxable.<\/li>\n<\/ul>\n\n\n\n<h2 id=\"how-to-claim-the-deduction\" class=\"wp-block-heading\">How to Claim the Deduction<\/h2>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Calculate Total Interest<\/strong>: Sum up the interest earned from all eligible savings accounts during the financial year.<\/li>\n\n\n\n<li><strong>Report Interest Income<\/strong>: Include this interest under the head &#x201C;Income from Other Sources&#x201D; in your <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/income-tax\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Income Tax<\/a> Return (ITR).<\/li>\n\n\n\n<li><strong>Claim Deduction<\/strong>: Under Chapter VI-A of the ITR form, claim the deduction under Section 80TTA.<\/li>\n\n\n\n<li><strong>Choose the Appropriate Tax Regime<\/strong>: Note that deductions under Section 80TTA are available only under the old tax regime.<\/li>\n<\/ol>\n\n\n\n<h2 id=\"section-80tta-vs-section-80ttb\" class=\"wp-block-heading\">Section 80TTA vs. Section 80TTB<\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>Feature<\/th><th>Section 80TTA<\/th><th>Section 80TTB<\/th><\/tr><\/thead><tbody><tr><td>Applicable To<\/td><td>Individuals &amp; HUFs (below 60 years)<\/td><td>Senior Citizens (60 years &amp; above)<\/td><\/tr><tr><td>Maximum Deduction<\/td><td>&#x20B9;10,000<\/td><td>&#x20B9;50,000<\/td><\/tr><tr><td>Eligible Interest Types<\/td><td>Savings Account Interest<\/td><td>Savings &amp; Fixed Deposit Interest<\/td><\/tr><tr><td>Applicable Tax Regime<\/td><td>Old Tax Regime<\/td><td>Old Tax Regime<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 id=\"important-notes\" class=\"wp-block-heading\">Important Notes<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>New Tax Regime<\/strong>: Under the new tax regime (Section 115BAC), deductions under Section 80TTA are <strong>not<\/strong> available.<\/li>\n\n\n\n<li><strong><a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/tds\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>TDS<\/a> on Savings Interest<\/strong>: Banks do not deduct TDS on savings account interest. However, it&#x2019;s mandatory to declare this income while filing your ITR.<\/li>\n<\/ul>\n\n\n\n<p>By understanding and appropriately applying Section 80TTA, taxpayers can effectively reduce their taxable income, leading to potential tax savings. Always ensure accurate reporting and consult with a tax professional if in doubt.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Section 80TTA of the Income Tax Act, 1961, offers a tax deduction on interest earned from savings accounts, providing relief to individuals and Hindu Undivided Families (HUFs). Here&#x2019;s a comprehensive guide to understanding this provision: What is Section 80TTA? Introduced in the Finance Act of 2013, Section 80TTA allows individuals and HUFs to claim a [&#x2026;]<\/p>\n","protected":false},"author":9,"featured_media":0,"menu_order":0,"template":"","meta":{"footnotes":""},"class_list":["post-7311","glossary","type-glossary","status-publish","hentry"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7311","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/glossary"}],"author":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/users\/9"}],"version-history":[{"count":1,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7311\/revisions"}],"predecessor-version":[{"id":7312,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7311\/revisions\/7312"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=7311"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}