⌖ Utility / Direct Tax
Deduction u/s 80TTA vs 80TTB.
Side-by-side comparison of the two interest deductions: eligibility, cap, account types.
As of
Income Tax Act, 1961, as amended by Finance Act, 2024
⌖ Context
Sections 80TTA and 80TTB grant a deduction for interest income, but only one applies to any given taxpayer in a year. 80TTB (introduced by Finance Act, 2018) is the broader, higher-cap deduction available only to resident senior citizens; 80TTA covers everyone else but with a narrower scope and a lower cap. Both deductions are available only under the old tax regime. They cannot be claimed if you opt for the new regime under Section 115BAC.
⌖ Source
Sections 80TTA & 80TTB, Income Tax Act, 1961
Side-by-side comparison
| Feature | Section 80TTA | Section 80TTB |
|---|---|---|
| Who can claim | Individual (< 60) and HUF | Resident individual ≥ 60 (senior citizen) |
| Residency | Resident or non-resident | Resident only |
| Maximum deduction | ₹10,000 | ₹50,000 |
| Savings bank interest | Eligible | Eligible |
| Fixed deposit interest | NOT eligible | Eligible |
| Recurring deposit interest | NOT eligible | Eligible |
| Post office deposits | Savings only | All deposits (savings, FD, RD, MIS) |
| Co-operative bank deposits | Savings only | All deposits |
| Available under new regime (115BAC) | No | No |
| TDS threshold (194A) for payer banks | ₹50,000 (others) | ₹1,00,000 (senior citizens) |
| Mutually exclusive with the other | Yes | Yes |
Where a senior citizen is eligible for 80TTB, they cannot additionally claim 80TTA on savings bank interest. 80TTB subsumes it.
Practical notes
Interest earned by an HUF on deposits held in the name of a senior-citizen member is NOT eligible for 80TTB. The deduction is for the individual alone. 80TTA may still be claimed by the HUF up to ₹10,000.
Interest on company / NBFC deposits is outside both sections and is fully taxable.
Where joint deposits are held with a senior citizen as first holder, interest is assessable in the first holder's hands and 80TTB applies. If the first holder is non-senior, 80TTA's narrower scope governs.
⌖ Related in Direct Tax
Keep reading.
Rates of TDS
Section-wise TDS rates for FY 2025-26 across the 192–196 series.
TDS Rates for N.R.I u/s 195
Withholding on payments to non-residents under Section 195, read with Part II of the First Schedule.
Rates of Income Tax
Slab rates, surcharge, cess and rebate for FY 2025-26: Old vs New regime.
Cost Inflation Index
Year-wise CII for indexation of long-term capital gains (base year 2001-02 = 100).