Section 80TTA / 80TTB

80TTA vs 80TTB — the key difference

Section 80TTA applies to those under 60 and covers only savings account interest from banks, post offices and co-operative societies — capped at ₹10,000 per year. Section 80TTB kicks in at age 60 and is far more generous: ₹50,000 deduction on combined interest from savings, fixed deposits, recurring deposits and senior citizen savings schemes (SCSS). You can't claim both; 80TTB replaces 80TTA the moment you turn 60.

Worked example

A 35-year-old Hyderabad professional with ₹3 lakh in SBI savings at 2.7% earns ~₹8,100 in interest — fully deductible under 80TTA, saving ₹1,620 tax at the 20% slab. A 65-year-old retiree with ₹15 lakh in SCSS at 8.2% earns ₹1.23 lakh in interest — only ₹50,000 is deductible under 80TTB, saving ₹10,400 at the 20% slab. Both deductions are available only under the old regime; the new regime ignores both sections entirely.

When to use this

• Bank savings accounts — almost everyone qualifies for 80TTA up to ₹10k
• Senior citizens with FDs, SCSS, or large savings balances
• Old regime filers — the new regime allows neither
• To know whether to submit Form 15G/15H to avoid TDS deduction at the bank

Note: interest from corporate FDs, debt mutual funds and EPF doesn't qualify — only bank/PO/co-op products. Pair this with the FD calculator and SCSS calculator when planning a retired parent's portfolio.