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When it comes to managing personal finances, every bit of savings counts. To encourage individuals to save and earn interest on their savings, the Indian government offers tax benefits under Section 80TTA of the Income Tax Act. This section allows a deduction on the interest earned from savings accounts held in banks, post offices, or cooperative societies, helping taxpayers reduce their taxable income while rewarding them for maintaining savings.Section 80TTA provides a deduction of up to INR 1 Article analyses Section 80TTA – Deduction in respect of interest on deposits in savings account for Individuals (other than Senior citizens) & HUF & Section 80TTB – Deduction in respect of interest on deposits in savings account for Senior citizens. It also contains Extract of Section 80TTA and Section 80TTB of Income TAx Act, 1961. Learn how to claim deduction on savings account interest up to Rs.10,000 under Section 80TTA of the Income Tax Act. Find out who is eligible, what are the exceptions, and how to apply for this tax benefit. Section 80TTA Bank credits interest to the savings accounts every month, quarter or year based on their policies. This savings interest earned is the taxable income under the head “ Income From Other Source.” Further, it is allowed to claim the deduction of such interest income under section 80TTA up to INR 10,000. Hence, this section provides relief to taxpayers from paying excess taxes. Eligibility to claim deduction u/s 80TTA Resident Individuals below the age of 60 years and HUFs can ...
