Deductions and exemptions · Tax Year 2025-26
Section 80TTA and 80TTB: savings interest deduction
Section 80TTA lets you deduct up to ₹10,000 of savings account interest. Section 80TTB gives senior citizens up to ₹50,000 on savings and deposit interest. Both apply in the old regime only. See who gets which.
On this page
Section 80TTA allows a deduction of up to ₹10,000 of interest from savings accounts for people who are not senior citizens. Section 80TTB allows up to ₹50,000 of interest from savings accounts and deposits for senior citizens. Both are old regime deductions. Neither is allowed in the new regime.
The figures are for the tax year 2025-26 under the Income-tax Act, 1961. TaxCare carries these limits into the tax year 2026-27 as provisional values, not yet signed off against the Income-tax Act, 2025, and neither deduction is allowed in the new regime.
Side by side
| 80TTA | 80TTB |
|---|---|---|
Who | Individuals and HUFs who are not senior citizens | Resident senior citizens (60 and above) |
Interest covered | Savings account interest | Savings and fixed deposit interest |
Maximum deduction | ₹10,000 | ₹50,000 |
New regime | Not allowed | Not allowed |
How the amount is worked out
The deduction is the lower of:
- The interest you earned of the eligible kind, and
- The cap: ₹10,000 under 80TTA, ₹50,000 under 80TTB.
It is also never more than the amount you claim.
Example 1: a person under 60
Savings account interest is ₹14,000. The deduction under 80TTA is ₹10,000. The remaining ₹4,000 is taxed at slab rates. In the new regime, the whole ₹14,000 is taxed.
Example 2: a senior citizen
Savings interest ₹18,000 and fixed deposit interest ₹70,000, total ₹88,000. The 80TTB deduction is ₹50,000. ₹38,000 is taxable.
Things to remember
- Show all the interest first. You report the full interest as income under "income from other sources", then claim the deduction. Do not leave interest out because it is below the cap.
- Check AIS. Banks report savings interest, and it appears in your AIS. See what is AIS.
- Tax on fixed deposit interest. For people who are not senior citizens, interest on fixed deposits does not get 80TTA. It is taxed in full, and TDS may apply.
When the old regime is not worth it just for this
An 80TTA deduction of ₹10,000 saves at most ₹3,120 in tax at the 30% slab with cess. (₹10,000 × 30% × 1.04 = ₹3,120.) That alone will not justify the old regime. Compare the whole tax in both regimes. See old vs new tax regime and deductions allowed in the new regime.
Pensioners and senior citizens
Senior citizens in the old regime also have a higher basic exemption (₹3,00,000 from 60, ₹5,00,000 from 80) and can claim 80TTB for deposit interest. See ITR for pensioners.
How TaxCare helps
TaxCare picks up interest income from your AIS and applies 80TTA or 80TTB by your age, limited to the interest you actually earned. It shows you the effect under each regime so you can see whether the old regime is worth it. Nothing is filed until you approve it.
This guide gives general information and is not professional tax advice.
Questions on this topic
What is the limit under section 80TTA?
₹10,000 on interest from savings accounts, for those who are not senior citizens, in the old regime.
What is the limit under section 80TTB?
₹50,000 on interest from savings accounts and deposits, for senior citizens (60 and above), in the old regime.
Can I claim both 80TTA and 80TTB?
No. A senior citizen claims 80TTB. Others claim 80TTA. In TaxCare's rules, 80TTA is not allowed for a senior citizen.
Does this work in the new regime?
No. Neither 80TTA nor 80TTB is allowed in the new regime.
Is fixed deposit interest covered by 80TTA?
80TTA is for savings account interest. Fixed deposit interest is covered by 80TTB for senior citizens, not by 80TTA.
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