Maximizing Your Savings: Understanding Section 80TTA and Its Benefits
Meaning
It is a deduction allowed to individuals and HUF under chapter VIA of the Income Tax Act,1961.
Applicability of Section 80TTA:
This deduction is allowed to Individuals and HUF's (other than senior citizens covered u/s 80TTB) from their Gross Total
Income(GTI) that includes interest income on deposits (other than time deposits) in a saving account with-
- banking company to which Banking Regulations Act,1949 applies
- a cooperative society engaged in carrying on business of banking or
- a post office as defined in clause (k) of section 2 of the Indian Post Office Act, 1898
Deductions Allowed:
Deductions allowed shall be the lower of
- actual interest income earned or
- Rs. 10000
Difference between 80TTA and 80TTB
| Parameters | Sec 80TTA | Sec 80TTB |
| Introduced on | Came to effect in AY 2013-14 | Came to effect in AY 2019-20 |
| Beneficiary | Individuals and HUF | Only Senior Citizens |
| Qualified Sources | Interest on Savings Account | Interest on deposits in Savings, Fixed and Recurring Accounts |
| Deduction Allowed | Rs. 10000 or income earned | Rs. 50000 or income earned |
| Eligibility | Eligible to both NRI and NRO accounts | Doesnot apply to NRI account |
New Regime
This deduction is not allowed under the New tax regime
