⌖ 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. Importantly, both deductions are only available under the OLD tax regime — they are not available 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 — it 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 — Section 195 read with Part II of First Schedule.
Rates of Income Tax
Slab rates, surcharge, cess and rebate — Old vs New regime for FY 2025-26.
Cost Inflation Index
Year-wise CII for indexation of long-term capital gains — base year 2001-02 = 100.