Section 80TTA vs Section 80TTB: Interest Income Deductions for FY 2025-26

80TTA and 80TTB compared

Feature	Section 80TTA	Section 80TTB
Who	Individuals and HUFs below 60	Resident senior citizens (60+ during FY)
Maximum deduction	Rs 10,000	Rs 50,000
Interest covered	Savings accounts only	Savings, fixed deposits, recurring deposits
Eligible institutions	Banks, co-operative banks, post offices	Banks, co-operative banks, post offices
Not covered	FD/RD interest, company deposits, bonds	Company deposits, NCDs, bonds
Regime	Old regime only	Old regime only

• The two sections are mutually exclusive: a senior citizen eligible for 80TTB cannot also claim 80TTA.
• You must be 60 on or before 31 March 2026 to use 80TTB for FY 2025-26.
• Both limits are unchanged for FY 2025-26. (From tax year 2026-27, the new Income Tax Act, 2025 merges these provisions, but your FY 2025-26 return is still filed under the 1961 Act.)

How to report interest income in your ITR

• Add up gross interest from every savings account, FD and RD — even where no TDS was cut — and report it under Income from Other Sources.
• Claim the 80TTA or 80TTB deduction in Schedule VI-A of the ITR.
• Check your AIS and Form 26AS: banks report interest paid/credited and any TDS to the department. If your return shows less interest than the AIS, you may receive a mismatch notice.
• Interest accrues even on auto-renewed FDs — report it yearly (accrual basis) or at maturity consistently.

Worked examples

How to claim 80TTA or 80TTB in your ITR

1. Collect interest figures: get interest certificates or annual statements from every bank, co-operative bank and post office account, and download your AIS and Form 26AS.
2. Opt for the old regime: both deductions lapse if you stay in the default new regime.
3. Report the gross interest: in Income from Other Sources, enter savings account interest in its own row and FD/RD interest under interest from deposits — even where no TDS was deducted.
4. Enter the deduction in Schedule VI-A: up to Rs 10,000 in the 80TTA field if you are below 60, or up to Rs 50,000 in the 80TTB field if you are a resident senior citizen. The two cannot be combined.
5. Claim TDS credit: any tax the bank deducted appears in Form 26AS — make sure it is claimed in the TDS schedule.
6. Reconcile and e-verify: match your totals with the AIS before you file your return online, then e-verify.

TDS on interest for FY 2025-26

Depositor	TDS threshold per bank (FY 2025-26)	How to avoid TDS if tax is nil
Below 60	Rs 50,000 of interest in the year	Submit Form 15G
Senior citizen (60+)	Rs 1,00,000 of interest in the year (raised from Rs 50,000 by Budget 2025)	Submit Form 15H
Savings account interest	No TDS, any age	Not needed — but still taxable and reportable

Old regime vs new regime

• Both 80TTA and 80TTB are unavailable in the new tax regime for FY 2025-26.
• Senior citizens with large deposit interest plus other deductions should compare regimes using our income tax calculator and the old vs new regime guide.

Documents to keep ready

• Interest certificates or annual statements from every bank and post office account
• FD/RD interest statements showing accrued or paid interest for FY 2025-26
• AIS and Form 26AS downloads from the income tax portal for cross-checking
• Proof of age (PAN/Aadhaar) for senior citizens claiming 80TTB

Common mistakes to avoid

• Skipping interest income because no TDS was deducted — banks still report it in your AIS, and omissions invite notices.
• Claiming FD or RD interest under 80TTA — it covers savings account interest only.
• A senior citizen claiming both 80TTA and 80TTB — only 80TTB applies once you are 60.
• Claiming the deduction without first adding the gross interest to Income from Other Sources — you must report the income, then deduct.
• Claiming either section while filing in the new regime.

Frequently asked questions

What is the difference between Section 80TTA and 80TTB?

Section 80TTA gives taxpayers below 60 a deduction of up to Rs 10,000 on savings account interest only. Section 80TTB gives resident senior citizens (60+) a deduction of up to Rs 50,000 covering savings account, fixed deposit and recurring deposit interest from banks, co-operative banks and post offices. A senior citizen claims 80TTB, not 80TTA.

Does 80TTA cover fixed deposit interest?

No. Section 80TTA covers only savings account interest. FD and RD interest is fully taxable for taxpayers below 60. Only senior citizens get the wider Section 80TTB deduction that includes FD and RD interest.

Has the 80TTB limit changed for FY 2025-26?

No. For FY 2025-26 (AY 2026-27) the Section 80TTB limit remains Rs 50,000 and the Section 80TTA limit remains Rs 10,000, the same as earlier years. Both are available only under the old tax regime.

Where do I show interest income in the ITR?

Report the gross interest under "Income from Other Sources" and claim 80TTA or 80TTB in Schedule VI-A. Cross-check the figures with your AIS/Form 26AS, since banks report interest paid and TDS there, and mismatches can trigger notices.

How do I claim 80TTA or 80TTB while filing?

First add the gross interest to Income from Other Sources (savings account interest is shown separately from deposit interest), opt for the old regime, then enter the deduction in the 80TTA or 80TTB field of Schedule VI-A — up to Rs 10,000 under 80TTA or Rs 50,000 under 80TTB. Claim any TDS already deducted as credit in the TDS schedule.

When is TDS deducted on FD interest, and can senior citizens avoid it?

For FY 2025-26, banks deduct TDS only if a senior citizen's interest from that bank exceeds Rs 1 lakh in the year (the Budget 2025 raised this threshold from Rs 50,000). A senior citizen whose total tax liability is nil can submit Form 15H to the bank to receive interest without TDS; the interest must still be reported in the ITR.

Get expert-assisted filing

All India ITR can reconcile your bank interest with the AIS, pick the right section between 80TTA and 80TTB, and report everything correctly before filing.

Explore salaried filing plans

Sources reviewed

• Income Tax Department – Salaried individuals for AY 2026-27 (Section 80TTA deduction)
• Income Tax Department – Senior citizens for AY 2026-27 (Section 80TTB deduction)
• PIB – Union Budget 2025-26 summary (senior-citizen interest TDS threshold raised to Rs 1 lakh)

This guide is for general understanding. Interest from company deposits, bonds and NBFC deposits is outside both sections — review your AIS with a tax expert before finalising your return.