Tax on Savings Bank Interest: Complete Guide to Deductions Under Section 80TTA

| Last updated: 18 September 2025

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Interest earned on your savings bank account is taxable, but you can claim a deduction of up to £10,000 under Section 80TTA of the Income Tax Act, provided you opt for the old tax regime. This guide explains who is eligible, what types of interest qualify, and how to claim this valuable tax relief. It also clarifies the differences between Section 80TTA and Section 80TTB for senior citizens.

A savings bank account is one of the most common financial tools that almost every individual holds. While it helps in keeping money safe and liquid, the interest earned on a savings account is not completely tax-free. According to the Income Tax Act, the interest is considered "Income from Other So

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About the Author

Pranab Banerjee

Software Maker & Income Tax Practisioner

I am a B.com from Kolkata University, West Bengal. I have some knowledge in Ms. Excel and ors DBMS in Computer. I have also some knowledge about Accounts and Income Tax. I have already prepared various Excel Calculation software and shared the same. Visit My Web Site www.itaxsoftware.net OR More Income Tax Related E ... Read more

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