Section 80TTA vs 80TTB: Tax-Free Interest on Savings & Deposits
Last verified: June 2026, against the Income Tax Act provisions cited below. Figures apply to FY 2025-26 (AY 2026-27). This is general information, not personal tax advice.
The interest your bank pays you is taxable — but two sections let you keep a slice of it tax-free. Section 80TTA gives most people up to ₹10,000, and Section 80TTB gives senior citizens a much larger ₹50,000. The catch: these deductions are available only under the old tax regime.
Section 80TTA — for under-60s
Individuals and HUFs below 60 can deduct up to ₹10,000 of interest earned on savings accounts with banks, co-operative banks or the post office. It does not cover fixed-deposit or recurring-deposit interest — only savings-account interest.
Section 80TTB — for senior citizens
Resident senior citizens (60 and above) get a more generous deduction of up to ₹50,000, and crucially it covers interest from savings accounts, fixed deposits and recurring deposits alike. This is one of the most valuable everyday benefits for retirees living on deposit income.
You cannot use both
A senior citizen claims 80TTB, not 80TTA — the two are mutually exclusive. For anyone under 60, only 80TTA is available.
Quick comparison
| 80TTA | 80TTB | |
|---|---|---|
| Who | Individuals/HUF under 60 | Senior citizens (60+) |
| Limit | ₹10,000 | ₹50,000 |
| Covers | Savings interest only | Savings + FD + RD interest |
| Regime | Old regime only | Old regime only |
The new-regime exclusion
Neither deduction is available if you opt for the new tax regime. If a large chunk of your income is deposit interest — common for retirees — this is a real point in favour of the old regime; compare carefully.
Interest above the limit, and TDS
Interest beyond the deduction is taxable as “Income from other sources” at your slab rate — see tax on FD interest. Banks deduct TDS once FD interest crosses ₹40,000 a year (₹50,000 for seniors). If your total income is below the taxable limit, submit Form 15G/15H to stop that TDS.
FAQs
Does 80TTA cover fixed-deposit interest?
No. 80TTA is only for savings-account interest. FD/RD interest qualifies under 80TTB, which is for seniors.
Can I claim 80TTA or 80TTB under the new regime?
No. Both are available only under the old regime.
I am 62 — can I claim both ₹10,000 and ₹50,000?
No. Senior citizens claim only 80TTB (₹50,000); the two cannot be combined.
Is post-office savings interest covered?
Yes, savings interest from the post office qualifies, subject to the same limits.
