80TTA Calculator, Claim Deduction for Interest on Savings
Calculate your eligible deduction under Section 80TTA for interest earned on savings bank, co-operative bank and post office savings accounts. The deduction is available up to ₹10,000 for eligible individuals and HUFs under the old tax regime.
Calculate Your Section 80TTA Deduction
Enter your savings account interest and tax slab to estimate deduction and possible tax saving.
What is Section 80TTA?
Section 80TTA allows eligible taxpayers to claim deduction on interest earned from savings accounts. The maximum deduction is ₹10,000 in a financial year. If your eligible savings interest is lower than ₹10,000, the actual interest amount can be claimed. If it exceeds ₹10,000, the deduction is capped at ₹10,000.
| Particular | Treatment Under Section 80TTA |
|---|---|
| Eligible taxpayers | Individuals below 60 years and HUFs |
| Maximum deduction | ₹10,000 per financial year |
| Eligible interest | Savings account interest from bank, co-operative bank and post office savings accounts |
| Not eligible | Fixed deposit interest, recurring deposit interest, corporate deposits and bonds |
| Senior citizens | Generally covered under Section 80TTB instead of 80TTA |
| Income head | Report interest under Income from Other Sources, then claim deduction if eligible |
Example of 80TTA Deduction
Suppose you earned ₹8,000 from a savings bank account, ₹3,000 from a post office savings account and ₹25,000 from fixed deposits. Your eligible savings interest is ₹11,000, but the 80TTA deduction is capped at ₹10,000. The remaining ₹1,000 savings interest and the full ₹25,000 FD interest remain taxable as per your slab rate.
Frequently Asked Questions on 80TTA Deduction
What is the maximum deduction under Section 80TTA?
The maximum deduction under Section 80TTA is ₹10,000 per financial year.
Is fixed deposit interest eligible under Section 80TTA?
No. Fixed deposit and recurring deposit interest are not eligible for deduction under Section 80TTA.
Can senior citizens claim 80TTA?
Senior citizens generally claim deduction for interest income under Section 80TTB, not Section 80TTA.
Is savings account interest fully tax-free?
No. Savings account interest is taxable. However, eligible taxpayers may claim deduction up to ₹10,000 under Section 80TTA.
Where should I report savings account interest in ITR?
Savings account interest should usually be reported under Income from Other Sources, and then eligible deduction may be claimed under Section 80TTA.