If you earn interest on a savings account, a fixed deposit, or a post office deposit, that interest is taxable — but two old deductions soften the bill. The 80TTA deduction covers savings interest up to ₹10,000 a year, while the 80TTB deduction gives resident senior citizens up to ₹50,000 a year on a much wider range of deposit interest. Both work only in the old tax regime, and from Tax Year 2026-27 both merge into a single provision, Section 153 of the Income Tax Act, 2025, with the same limits.
Quick answer: Under the old tax regime, individuals below 60 and HUFs can deduct up to ₹10,000 of savings account interest under Section 80TTA, and resident senior citizens can deduct up to ₹50,000 of savings, FD and RD interest under Section 80TTB. You cannot claim both. From Tax Year 2026-27, both deductions live under Section 153 of the Income Tax Act, 2025, with the same ₹10,000 and ₹50,000 limits.
What is the 80TTA deduction?
Section 80TTA of the Income-tax Act, 1961 gives individuals (other than resident senior citizens) and Hindu Undivided Families (HUFs) a deduction of up to ₹10,000 per financial year on interest from savings accounts. The accounts must be with a bank, a co-operative society carrying on banking business, or a post office.
Only savings account interest counts. Interest from fixed deposits, recurring deposits, company deposits, bonds and debentures does not qualify under 80TTA — this is the single most common mistake taxpayers make with this section.
If your savings interest is below ₹10,000, you deduct the actual amount. If it is above ₹10,000, you deduct ₹10,000 and the rest stays taxable. The ₹10,000 cap applies to all your savings accounts added together, not per bank.
Worked example — non-senior: Ramesh, 35, earns ₹12,000 as savings account interest in FY 2025-26. He first reports the full ₹12,000 under “Income from Other Sources”, then claims ₹10,000 under Section 80TTA. Only ₹2,000 of the interest remains taxable. At a 20% slab rate plus 4% cess, the deduction saves him ₹2,080 in tax.
What is the 80TTB deduction for senior citizens?
Section 80TTB gives resident senior citizens — individuals aged 60 years or more at any point during the financial year — a deduction of up to ₹50,000 per year on interest from deposits. Unlike 80TTA, it covers savings account interest and interest from fixed deposits, recurring deposits and post office deposits.
The ₹50,000 cap is a combined total across every bank, post office and co-operative bank, not a per-bank limit. A senior citizen with ₹30,000 of FD interest at one bank and ₹30,000 at another has ₹60,000 of eligible interest but can still deduct only ₹50,000.
Worked example — senior citizen: Sunita, 62, earns ₹18,000 of savings interest, ₹30,000 of FD interest and ₹7,000 of post office Monthly Income Scheme interest in FY 2025-26 — ₹55,000 in total. She reports all ₹55,000 under “Income from Other Sources” and claims ₹50,000 under Section 80TTB, leaving just ₹5,000 taxable. At a 20% slab rate plus cess, the deduction saves her ₹10,400.
80TTA vs 80TTB: the comparison table
| Feature | Section 80TTA | Section 80TTB |
|---|---|---|
| Who can claim | Individuals below 60, and HUFs | Resident senior citizens (60+) only |
| Maximum deduction | ₹10,000 per year | ₹50,000 per year |
| Interest covered | Savings accounts only | Savings accounts, FDs, RDs, post office deposits |
| Institutions | Banks, co-operative banks, post offices | Banks, co-operative banks, post offices |
| Tax regime | Old regime only | Old regime only |
| New Act section (from Tax Year 2026-27) | Section 153 | Section 153 |
Can a senior citizen claim both 80TTA and 80TTB?
No. The two sections are mutually exclusive for an individual. Once you qualify as a senior citizen during the financial year, Section 80TTB applies to your interest income and Section 80TTA is no longer available to you for that year. This is not a choice between two benefits — 80TTB already includes savings interest within its higher ₹50,000 limit, so claiming 80TTA on top would double-count the same income.
What changed, and what stayed the same?
What stayed the same: the limits (₹10,000 and ₹50,000), the eligible institutions, the old-regime-only rule, and the mutual-exclusivity rule have all carried over unchanged.
What changed: from Tax Year 2026-27, the Income Tax Act, 2025 merges both deductions into a single provision — Section 153 (“Deduction for interest on deposits”). Non-senior individuals and HUFs get up to ₹10,000 on savings interest under Section 153, and resident senior citizens get up to ₹50,000 on savings and time-deposit interest under the same section. Returns for FY 2025-26 (AY 2026-27) are still filed under the 1961 Act, so you will still see 80TTA and 80TTB on those forms.
A second change is often confused with the deduction itself. Budget 2025 raised the TDS threshold on interest income for senior citizens from ₹50,000 to ₹1,00,000 per bank (and from ₹40,000 to ₹50,000 for other taxpayers) under Section 194A. That threshold only decides whether the bank withholds tax — it is not the 80TTB deduction limit, which stays at ₹50,000. A senior citizen can have no TDS deducted and still owe tax on interest above ₹50,000.
By the numbers: the figures that matter
- ₹10,000 — the 80TTA deduction cap on savings interest (Income-tax Act, 1961, Section 80TTA).
- ₹50,000 — the 80TTB deduction cap for resident senior citizens on deposit interest (Income-tax Act, 1961, Section 80TTB).
- ₹1,00,000 — the TDS threshold per bank on interest for senior citizens from FY 2025-26 (Finance Act, 2025, Section 194A) — a collection threshold, not a deduction.
- Section 153 — the single merged provision under the Income Tax Act, 2025, effective from Tax Year 2026-27, with the same ₹10,000 and ₹50,000 limits.
How to claim 80TTA or 80TTB in your ITR
- Collect the figures: get interest certificates or annual statements from every bank, co-operative bank and post office account, and download your AIS and Form 26AS from the e-filing portal.
- Choose the old regime: both deductions disappear if you stay in the default new regime. Run both regime computations before you decide — a senior citizen with large deposit interest plus other old-regime deductions may still come out ahead on the old regime.
- Report the gross interest first: enter the full interest under “Income from Other Sources”. Never net off the deduction yourself — declare first, deduct second. Skipping the declaration invites an AIS mismatch notice.
- Enter the deduction in Schedule VI-A: up to ₹10,000 in the 80TTA field if you are below 60, or up to ₹50,000 in the 80TTB field if you are a resident senior citizen. From Tax Year 2026-27, use Section 153 instead.
- Claim any TDS credit: tax the bank deducted appears in Form 26AS — make sure it is claimed in the TDS schedule, even if it exceeds your final liability (the excess comes back as a refund).
- Reconcile and e-verify: match your totals with the AIS before filing, then e-verify within 30 days.
Does 80TTA cover FD interest?
No. Section 80TTA covers only savings account interest. FD and RD interest is fully taxable for a non-senior taxpayer, with no 80TTA relief. For a resident senior citizen, the same FD and RD interest qualifies under 80TTB (or Section 153 from Tax Year 2026-27), up to the ₹50,000 combined cap.
Are 80TTA and 80TTB available in the new tax regime?
No. Both deductions sit in Chapter VI-A of the 1961 Act and are not available under the new tax regime (Section 115BAC, now Section 202 of the 2025 Act). Under the new regime your full savings and FD interest is added to taxable income with no special deduction. This is worth checking every year: if your only old-regime deductions are small, the new regime’s lower slab rates may still win, but you must compare real numbers, not assumptions.
Can NRIs claim 80TTA?
Yes, with limits. An NRI can claim 80TTA on taxable interest from an NRO savings account, up to ₹10,000, under the old regime. NRE account interest is exempt from Indian tax, so no deduction is needed for it. NRO fixed deposit interest is taxable but does not qualify under 80TTA. And 80TTB is closed to NRIs entirely — it is available only to resident senior citizens.
Common mistakes to avoid
- Claiming 80TTA and 80TTB together — a senior citizen uses 80TTB only.
- Putting FD interest under 80TTA — FD and RD interest never qualifies under 80TTA.
- Treating the TDS threshold as the deduction limit — no TDS below ₹1,00,000 for seniors does not mean ₹1,00,000 is deductible; the deduction cap is ₹50,000.
- Not declaring interest because no TDS was cut — savings interest has no TDS at all, yet it is fully reportable.
- Forgetting post office deposits — post office savings and time-deposit interest also qualifies, and many taxpayers under-claim by leaving it out.
- Filing under the new regime and expecting the deduction — the deduction simply does not exist there.
- Using the old section numbers from Tax Year 2026-27 — look for Section 153 on the new forms.
Frequently asked questions
Can a senior citizen claim both 80TTA and 80TTB in the same year?
No. The two sections are mutually exclusive. If you are 60 or older during the financial year, only Section 80TTB applies to you, covering savings, FD and RD interest up to ₹50,000 in total. Section 80TTA is not available to you for that year.
Does 80TTA cover fixed deposit interest?
No. Section 80TTA applies only to interest from savings accounts with banks, co-operative societies engaged in banking, and post offices. FD and RD interest gets no relief under 80TTA, though it does qualify under 80TTB for resident senior citizens.
Are 80TTA and 80TTB available under the new tax regime?
No. Both are old-regime-only deductions. Under the new tax regime, your entire savings and deposit interest is added to taxable income and no deduction under 80TTA, 80TTB or Section 153 is available.
Is the 80TTB limit per bank or a combined total?
It is a combined total. Add up savings, FD and RD interest from every bank, post office and co-operative bank on your PAN — the deduction cannot exceed ₹50,000 per financial year, however many accounts you hold.
If no TDS was deducted on my interest, is the interest tax-free?
No. TDS and tax exemption are different things. Banks skip TDS on savings interest entirely, and on FD interest below the ₹50,000 (or ₹1,00,000 for seniors) threshold, but the interest itself remains taxable and must be declared in your return before you claim the deduction.
Can NRIs claim 80TTA?
Yes, on taxable interest from an NRO savings account, up to ₹10,000, under the old regime. NRIs cannot claim 80TTB, which is reserved for resident senior citizens, and NRE interest needs no deduction because it is already exempt.
Related guides on eircicai
- TDS on FD Interest: Section 194A Rates, ₹50,000/₹1 Lakh Limits & Form 121
- TDS on Salary: Section 192 Rates, Calculation and How to Reduce It
- New Tax Regime Slabs FY 2026-27: Complete Table, Rates & Zero-Tax Rules
- 80D is Now Section 126: Health Insurance Deduction Rules
Official sources
- Income Tax Department e-filing portal: https://www.incometax.gov.in
- Income Tax Department (official information): https://incometaxindia.gov.in
- India Post — post office savings schemes: https://www.indiapost.gov.in
Reviewed by Asuthod Rathod, CA · Last updated: 28 October 2026
Disclaimer: This guide explains the law in simple terms for general information. Tax rules change with each Budget, and your situation may differ. Check the official income tax portal or speak to a qualified tax professional before filing.
Editorial byline for eircicai tax saving guides — covering 80C investments, ELSS, PPF, NPS, and regime comparison. Content is reviewed by Asuthod Rathod, CA.