How to claim deduction under Section 80TTA

NEW DELHI: The Section 80TTA provides a deduction of Rs 10,000 on interest income to an Individual and Hindu Undivided Family (HUF).


Under this Section, the deduction is allowed on interest earned from - savings bank account, co-operative society saving the account, and Post Office savings account.

Deduction under Section 80TTA is not allowed on interest earned on time deposits such as fixed deposits or recurring deposits.

The maximum deduction allowed under Section 80TTA is limited to Rs 10,000. If your interest income from the above sources is less than Rs 10,000, the entire interest income will be your deduction. But in case your interest income is more than Rs 10,000, your deduction will be limited to Rs 10,000. While calculating your interest income you will have to consider interest earned from all banks where you have saving accounts.

To claim the deduction under this section, first, add your total interest income under the head ‘income from other sources’ in your

Income Tax Return

Form. The deduction will be shown under Section 80 Deductions under Section 80TTA of Income Tax Act.


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