Section 80TTA — savings account interest: limits, eligibility and how to claim

Every rupee of eligible deduction reduces the income on which you pay tax. Section 80TTA of the Income-tax Act, 1961 is one such provision, and using it correctly can meaningfully lower your tax bill.

This guide explains Section 80TTA in plain language — the deduction limit, who can claim it, what is covered, the documents to keep, and the exact steps to claim it in your ITR.

What is 80TTA?

Section 80TTA lets you deduct interest earned on savings bank accounts, up to ₹10,000 a year.

How much can you claim?

Up to ₹10,000 per year on savings account interest.

Who is eligible

• Individuals and HUFs below 60 years of age.
• Available under the old regime.
• Applies to interest from savings accounts with banks, co-operative banks and post offices.

What is covered

• Interest on savings bank accounts (not fixed deposits).

Documents and proof to keep

• Bank interest statement / passbook.

Retain these documents even though they are not attached to the return — the tax department can ask for them during processing or assessment.

Interest above the cap

If your savings interest for the year is ₹14,000, you can deduct ₹10,000 under 80TTA; the remaining ₹4,000 is taxable.

Points to remember

• Senior citizens use Section 80TTB instead, which has a higher ₹50,000 limit and also covers FD interest.

How to claim it in your ITR

1. Gather proof. Collect the certificates, receipts or statements listed above for the financial year.
2. Choose the right regime. Opt for the old regime in your return, otherwise the deduction will not apply.
3. Enter the amount. Report the eligible amount against Section 80TTA in the deductions schedule of your ITR on the income-tax e-filing portal.
4. Verify and file. Cross-check against Form 26AS / AIS, then submit and e-verify the return within the prescribed time.

Frequently asked questions