Updated on : Aug. 27, 2022 - 5 p.m. 17 min read.
Section 80TTA of the Income Tax Act allows you to claim deductions on savings accounts deposits that are held in a post office, bank, or cooperative society. The exemption sought should be less than Rs. 10,000.
The most important factors to eligible for Income Tax Section 80TTA deductions are -
● Taxpayers residing in India
● Group of individuals under HUF
● NRI with an NRO savings account
● Age below 60 years (there is no applicability of section 80TTA for senior citizens, they can apply for section 80TTB)
Deduction under section 80TTA is applicable for individuals whose total income is above the taxable slab. For example, if your income is ₹ 2,00,000 and your specific earning from interest is ₹ 50,000 in a fiscal year. Then you are not eligible to apply for section 80TTA as total income is below the taxable slab.
Deduction on interest received on saving bank accounts by Non-Senior Citizens Deduction limit of ₹ 10,000.
Difference between Section80- TTA and Section80- TTB:
What Type of Interest Is Not Allowed for Deduction Under Section 80TTA?
Interests from the following sources are not allowed under this section -
● Fixed deposit.
● Recurring account.
● Time deposit.
● Savings with non-banking finance companies.
Companies, LLP, and partnership firms are not allowed to get benefits on interest under section 80TTA.
Which type of Interest Income is Allowed as Deduction Under Section 80TTA?
● From savings account with a bank
● From savings account with a cooperative society carrying on the business of banking
● From savings account with a post office