Who can claim deduction under section 80TTA?
If you opt for the old, existing income tax regime while filing ITR for FY 2021-22 (AY 2022-23), you can claim a deduction of up to Rs 10,000 savings account interest, People who are below 60 years of age can claim this deduction. Also, this deduction can be claimed by Hindu Undivided Family (HUF).
Income which is covered under section 80TTA
Deduction under section 80TTA can be claimed for interest earned on savings accounts with a bank, co-operative bank or post office. For interest earned from other sources like fixed deposits, recurring deposits, bonds etc., no deduction or tax exemption is available under this section.
What is the maximum deduction that can be claimed under section 80TTA?
An individual can claim a maximum deduction of Rs 10,000 for interest earned from all savings account held by a bank, co-operative bank or post office.
How to claim deduction under section 80TTA
To claim deduction under section 80TTA, an individual first needs to calculate the total interest received from all bank accounts and post office savings account(s) during the financial year. The total interest received from the savings account maintained by an individual will be added to the gross total income.
Once the gross total income is determined, you can claim deduction under section 80TTA just like you claim deduction under section 80C, 80D etc.
Who cannot claim deduction under Section 80TTA,
Note that senior citizens (aged 60 years and above) cannot claim deduction under section 80TTA. They can claim deduction under section 80TTB. Deduction is available for interest earned from savings bank accounts, fixed deposits, recurring deposits, post office schemes etc.