This 80TTA deduction calculator that provides you the idea of how much deductions you can claim against the interest earned on the savings accounts from your gross total income. This tool helps you to plan your taxes in advance so that you can save more.
Section 80TTA allows you to claim deductions on the interest income earned on saving accounts with banks, cooperative society & post offices. 80TTA Calculator helps you to determine the deductions you eligible to claim and the tax you have to pay on the interest on savings accounts. The savings account can be held in any of the following financial institutions:
The deductions under 80TTA can be calculated with the following:
In a financial year, Mr Sharma gets a salary of Rs. 5,00,000 and earns Rs. 5,000 as interest on a bank savings account and Rs. 15,000 as interest on fixed deposits. Also, a deduction of Rs. 10,000 is available under section 80C. Taxable income will be calculated in the following manner:
| Particulars | Amount | Amount |
|---|---|---|
| Income from Salary Less: Standard Deduction |
5,00,000 (50,000) |
4,50,000 |
| Income from other sources -Interest on savings account -Interest on fixed deposits |
5,000 15,000 |
20,000 |
| Gross Total Income | 4,70,000 | |
| Less: Chapter VI-A deduction -80C -80TTA |
10,000 5,000 |
(15,000) |
| Taxable Salary | 4,55,000 |
The highest amount that can be claimed u/s 80TTA is ₹10,000. If your interest income on your saving bank account is less than ₹10,000, you can claim this entire amount as a deduction u/s 80TTA. If you earn more than ₹10,000 as interest on your saving bank account, your deduction will be restricted to ₹10,000 u/s 80TTA.
Note : You have to consider your total interest income from all banks in case you have multiple accounts
This calculator is a part of a larger suite of calculators we have for you. The 80TTA calculator will help you to understand the deduction under section 80TTA of the Income Tax Act, 1961.
To use the 80TTA calculator, you must meet the following criteria:
- You are an Individual or HUF
- For Sec 80TTA to apply, the taxpayer must be under 60 years
- NRIs holding a Non-Resident Ordinary (NRO) savings account are eligible.
- Taxpayers must have opted for the old tax regime.
- You have earned interest income in your savings account
To claim deductions under Section 80TTA, you need to first add your total interest income under the head ‘Income from Other Sources’ in your return. Then calculate your gross total income from all the income heads for the financial year. Thus show it as a deduction under Section 80TTA.
Interest generated on time deposits, such as fixed deposits or recurring deposits is not eligible for this deduction under section 80TTA of Income Tax Act,1961.
80TTA deduction for NRIs can be claimed on the Non-Resident Ordinary Savings bank account. Nevertheless, this deduction cannot be availed on the NRO Fixed Deposit account. NRO savings account holders can claim the benefit of Section 80TTA as interest earned on NRE accounts are tax-free
Individuals and HUFs (but not Senior Citizens), can claim deduction up to Rs. 10000 on the interest income from savings accounts under Section 80TTA. Whereas under Section 80TTB is only for seniors citizens who are 60 years of age or older. Under section 80TTB resident senior citizens can claim a deduction upto Rs. 50000 on interest from savings and fixed deposit accounts.
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