80TTA & 80TTB Deductions under Income tax - interest on deposits

In computing the total income of an assessee the following deductions are allowed for interest on deposits.

Section - 80TTA of Income-tax Act, 1961-2020

Deduction in respect of interest on deposits in savings account.

Eligible Assessee: Individual or a Hindu undivided family (other than the assessee referred to in section 80TTB)

👉Deduction allowed against any income by way of interest on deposits (not being time deposits) in a savings account with—
a banking company (or)
a co-operative society engaged in banking (or)
a Post Office

Maximum Amount of Deduction: Rs 10,000

NOTE: 

☑ Where the interest income is derived from any deposit in a savings account held by, or on behalf of, a firm, an association of persons or a body of individuals, no deduction shall be allowed under this section in respect of such income in computing the total income of any partner of the firm or any member of the association or any individual of the body.
☑ "time deposits" means the deposits repayable on expiry of fixed periods.

Section - 80TTB of Income-tax Act, 1961-2020

Deduction in respect of interest on deposits in case of senior citizens.

Eligible Assessee: Resident Individual being senior citizen (age of 60 or more)

👉Deduction allowed against any income by way of interest on deposits with—
a banking company
a co-operative society engaged in banking
a Post Office

Maximum Amount of Deduction: Rs 50,000

NOTE: Where the interest income is derived from any deposit held by, or on behalf of, a firm, an association of persons or a body of individuals, no deduction shall be allowed under this section in respect of such income in computing the total income of any partner of the firm or any member of the association or any individual of the body.

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