The bank credits interest to your savings account every quarter. You also hold a fixed deposit, or your parents do. At return time the question is simple: how much of that interest can you deduct, and under which section?

Two sections answer it. Section 80TTA is for most individuals and Hindu undivided families. Section 80TTB is only for senior citizens, and it is wider. You cannot use both. This article explains which one applies to you, what each covers, and what changes from tax year 2026-27.

## The short answer

Under the Income-tax Act, 1961 (for assessment year 2026-27, income of financial year 2025-26):

- Section 80TTA: an individual or Hindu undivided family (HUF) gets a deduction on savings account interest, up to ₹10,000.
- Section 80TTB: a senior citizen gets a deduction on interest from deposits, up to ₹50,000.

Both are claimed only under the old tax regime. Neither is allowed under the new tax regime.

## Section 80TTA: savings account interest, up to ₹10,000

Section 80TTA applies where the gross total income of an individual or HUF "includes any income by way of interest on deposits (not being time deposits) in a savings account" (section 80TTA(1), Income-tax Act, 1961). The savings account must be with one of three kinds of institution:

- a banking company covered by the Banking Regulation Act, 1949, including a bank or banking institution referred to in section 51 of that Act;
- a co-operative society engaged in the business of banking, including a co-operative land mortgage bank or land development bank; or
- a Post Office.

The deduction is the whole interest if it does not exceed ₹10,000 in total, and ₹10,000 if it does (section 80TTA(1)(i) and (ii), Income-tax Act, 1961).

"Time deposits" means "deposits repayable on expiry of fixed periods" (Explanation to section 80TTA, Income-tax Act, 1961). In plain words, interest on a fixed deposit or a recurring deposit is not covered by section 80TTA. Only the interest on a true savings account is.

Note the words "in the aggregate". The ₹10,000 is one cap across all your savings accounts, not ₹10,000 per bank.

### Who cannot use section 80TTA

The opening words of section 80TTA(1) exclude "the assessee referred to in section 80TTB". That is the senior citizen. A senior citizen does not claim 80TTA at all; the claim moves to section 80TTB. The e-filing validation rules say the same for AY 2026-27: deduction under section 80TTA "cannot be claimed by Senior Citizen" (CBDT e-Filing ITR-1 Validation Rules, AY 2026-27).

Firms are also shut out in a specific way. If the savings account interest is earned by or on behalf of a firm, an association of persons or a body of individuals, no deduction is allowed to any partner, member or individual of that body (section 80TTA(2), Income-tax Act, 1961). The interest belongs to the firm; it does not pass through to you for this deduction.

## Section 80TTB: deposit interest for senior citizens, up to ₹50,000

Section 80TTB applies where the gross total income of an assessee "being a senior citizen" includes "any income by way of interest on deposits" with the same three institutions: a banking company, a co-operative bank, or a Post Office (section 80TTB(1), Income-tax Act, 1961).

Compare the wording with section 80TTA. Section 80TTB does not say "savings account" and does not exclude time deposits. It says "interest on deposits". So for a senior citizen, interest on savings accounts and on fixed or recurring deposits with those institutions can all count toward the limit.

The deduction is the whole interest if it does not exceed ₹50,000 in total, and ₹50,000 if it does (section 80TTB(1)(i) and (ii), Income-tax Act, 1961).

### Who is a senior citizen

For section 80TTB, "senior citizen" means "an individual resident in India who is of the age of sixty years or more at any time during the relevant previous year" (Explanation to section 80TTB, Income-tax Act, 1961). Two points follow:

- The person must be resident in India. A non-resident individual aged 60 or more does not meet the definition. On the wording of the two sections, such a person is therefore not the "assessee referred to in section 80TTB" that section 80TTA(1) carves out. Check the facts with your CA.
- Turning 60 at any time in the year is enough. You do not need to be 60 on 1 April.

The ITR-1 validation rules for AY 2026-27 reflect this in the form: an assessee "less than 60 years of age cannot claim deduction under section 80TTB" (date of birth before 02.04.1966 qualifies for AY 2026-27), and the maximum is ₹50,000 (CBDT e-Filing ITR-1 Validation Rules, AY 2026-27).

### Firms and groups

The same pass-through bar applies. If the deposit is held by or on behalf of a firm, an association of persons or a body of individuals, no deduction is allowed to a partner, member or individual of that body (section 80TTB(2), Income-tax Act, 1961).

## Side by side

| Point | Section 80TTA | Section 80TTB |
|---|---|---|
| Who | Individual or HUF who is not a senior citizen | Senior citizen (resident, 60 or more) |
| What interest | Savings account only; time deposits excluded | Interest on deposits; fixed and recurring deposits are not excluded |
| Where held | Bank, co-operative bank, Post Office | Bank, co-operative bank, Post Office |
| Maximum | ₹10,000 | ₹50,000 |
| New tax regime | Not allowed | Not allowed |

(Section 80TTA and section 80TTB, Income-tax Act, 1961.)

## Worked examples

These use only the limits above.

Example 1: a salaried person aged 38 earns ₹7,200 interest on a savings account and ₹30,000 on a fixed deposit. Under the old regime, section 80TTA covers the savings interest, so ₹7,200 is deductible (the whole amount, as it is under ₹10,000). The fixed deposit interest is a time deposit and is not covered. It stays taxable.

Example 2: the same person earns ₹14,000 on savings accounts spread across two banks. The cap is ₹10,000 in aggregate, so the deduction is ₹10,000.

Example 3: a resident senior citizen earns ₹18,000 on a savings account and ₹40,000 on a fixed deposit with a bank. Section 80TTB applies, not 80TTA. The total interest is ₹58,000, which exceeds ₹50,000, so the deduction is ₹50,000.

Example 4: a resident senior citizen earns ₹22,000 in total deposit interest. All of it is below ₹50,000, so the whole ₹22,000 is deductible.

## The new tax regime bar

Section 115BAC of the Income-tax Act, 1961 sets the new regime rates. It requires total income to be computed "without ... any of the provisions of Chapter VI-A other than the provisions of sub-section (2) of section 80CCD or sub-section (2) of section 80CCH or section 80JJAA" (section 115BAC(2)(i), Income-tax Act, 1961). Sections 80TTA and 80TTB sit in Chapter VI-A and are not on that short list. So neither is available if you are taxed under section 115BAC.

The e-filing rules for AY 2026-27 enforce this in the form. If the new tax regime is selected, the deduction claimed under section 80TTA, and under section 80TTB, "should not be more than 0" (CBDT e-Filing ITR-1 Validation Rules, AY 2026-27).

The new regime under section 115BAC(1A) applies unless you have exercised the option under section 115BAC(6) to stay out of it, so the old regime has to be a deliberate choice. Practical effect: if you are taxed under the new regime, interest from savings and deposits is simply taxed in full as income from other sources. When you compare regimes, remember to include these deductions on the old regime side.

## Other limits to keep in mind

- The deduction applies to interest that is part of your gross total income. The validation rules for AY 2026-27 restrict the 80TTA deduction to savings account interest shown as income from other sources, and the 80TTB deduction to interest from other sources (CBDT e-Filing ITR-1 Validation Rules, AY 2026-27).
- Total Chapter VI-A deductions cannot exceed gross total income (same validation rules).
- Interest on a post office savings account is covered, since a Post Office is one of the named institutions. Interest from other sources, such as a company fixed deposit or an NBFC deposit, is not.

## From tax year 2026-27: section 153 of the Income-tax Act, 2025

The Income-tax Act, 2025 applies from 1 April 2026, so it governs tax year 2026-27 onward. The 1961 Act sections 80TTA and 80TTB are mapped to section 153 of the 2025 Act, titled "Deduction for interest on deposits" (Income-tax Act 1961 to 2025 section mapping table). Section 153 folds both into one section.

Section 153(1) covers three kinds of assessee: an individual who is not a senior citizen, an individual who is a senior citizen, and an HUF. The institutions are the same: a banking company, a co-operative society engaged in banking, and a Post Office (section 153(1), Income-tax Act, 2025).

Section 153(2) sets the amounts for a tax year:

- For an individual who is not a senior citizen, or an HUF: the whole of the interest up to ₹10,000 "on deposits in a savings account, excluding time deposits" (section 153(2)(a), Income-tax Act, 2025).
- For a senior citizen: the whole of the interest up to ₹50,000 "on deposits in any account, including time deposits" (section 153(2)(b), Income-tax Act, 2025).

The limits and the split are the same as under the 1961 Act. The firm and body-of-individuals bar is kept for both limbs (section 153(3) and (4), Income-tax Act, 2025), and "time deposits" keeps its meaning of deposits repayable on expiry of fixed periods (section 153(5), Income-tax Act, 2025).

"Senior citizen" is defined as "an individual resident in India who is of the age of sixty years or more at any time during the relevant tax year" (section 2(100), Income-tax Act, 2025).

The new regime bar carries over. Section 202 of the Income-tax Act, 2025 (the new regime for individuals and HUFs, mapped from section 115BAC of the 1961 Act) computes total income "without any exemption or deduction under" Chapter VIII, other than sections 124(1), 124(2), 125(2) and 146 (section 202(2)(a)(xii), Income-tax Act, 2025). Section 153 sits in Chapter VIII and is not on the exception list. So the deduction is not available under the new regime in tax year 2026-27 either.

## What not to do

- Do not claim 80TTA if you are a resident senior citizen. Claim 80TTB.
- Do not claim 80TTA on fixed deposit interest. It covers savings accounts only.
- Do not claim either deduction if you file under the new tax regime.
- Do not treat the ₹10,000 or ₹50,000 as a per-bank amount. It is a total.
- Do not claim a deduction on interest earned by a firm or association through a partner or member.

## What to do now

1. Add up the interest on every savings account, and separately on every deposit, from the annual information statement and bank certificates. (Check each against your return before you file.)
2. Decide your regime. The new regime is the default under section 115BAC(1A) of the Income-tax Act, 1961 unless you opt out under section 115BAC(6), and under it no deduction is available (section 115BAC(2)(i)). Under the old regime, claim section 80TTA or section 80TTB, as applicable.
3. If you are a resident senior citizen, claim section 80TTB (up to ₹50,000), not section 80TTA (section 80TTA(1); section 80TTB(1), Income-tax Act, 1961).
4. For tax year 2026-27 onward, claim under section 153 of the Income-tax Act, 2025, with the same limits.
5. Timing and consequence: the deduction is claimed through the return. If you missed it, section 139(5) of the Income-tax Act, 1961 lets you furnish a revised return "at any time before the end of the relevant assessment year or before the completion of the assessment", subject to the fee in section 234-I. For assessment year 2026-27 the assessment year ends on 31 March 2027. If you have not filed at all, a belated return under section 139(4) may be furnished "at any time before three months prior to the end of the relevant assessment year or before the completion of the assessment, whichever is earlier" (section 139(4), Income-tax Act, 1961), which for assessment year 2026-27 means by 31 December 2026.

Have a CA review your facts before you act or file.

## FAQs

**Can I claim 80TTA on a fixed deposit?**
No. Section 80TTA covers interest on deposits "not being time deposits" in a savings account (section 80TTA(1), Income-tax Act, 1961). A fixed deposit is a time deposit.

**Can a senior citizen claim both 80TTA and 80TTB?**
No. Section 80TTA(1) excludes the assessee referred to in section 80TTB, who is the senior citizen. The senior citizen claims under section 80TTB only.

**Does 80TTB cover fixed deposit interest?**
Yes. Section 80TTB(1) refers to interest on deposits with a bank, co-operative bank or Post Office, and does not carve out time deposits, so fixed and recurring deposit interest can count toward the ₹50,000 limit (section 80TTB(1), Income-tax Act, 1961).

**Is the deduction available if I choose the new tax regime?**
No. Section 115BAC(2)(i) of the Income-tax Act, 1961 disallows Chapter VI-A deductions other than the ones it lists, and section 80TTA and section 80TTB are not listed. From tax year 2026-27, section 202(2) of the Income-tax Act, 2025 does the same for section 153.

**Does a non-resident senior citizen get 80TTB?**
Not under the definition. A senior citizen for section 80TTB is "an individual resident in India" aged sixty or more (Explanation to section 80TTB, Income-tax Act, 1961).

**Which section replaces 80TTA and 80TTB from 2026-27?**
Section 153 of the Income-tax Act, 2025, titled "Deduction for interest on deposits", with the same ₹10,000 and ₹50,000 limits (section 153(2), Income-tax Act, 2025).

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