Deduction against Interest Income

Deduction against Interest Income

Section 80TTA allows you to claim a deduction on the interest earned from savings accounts held with banks, post offices, or cooperative societies.


Note: This deduction does not apply to interest from fixed deposits (FDs) or recurring deposits (RDs).

Common Questions

  • Why is my deduction amount showing as zero?
    If your interest income was adjusted against other heads of income or losses during the year, the deduction may appear as zero.
  • Does this include interest from Fixed Deposits (FDs)?
    No. Section 80TTA applies only to savings account interest. However, senior citizens can claim a higher deduction of ₹50,000 under Section 80TTB, which includes interest from FDs as well.

Steps to Review Deduction under 80TTA

  1. Navigate to File > Deductions
  2. Select Section 80TTA/ TTB card
  3. Review the deduction for interest earned during the year

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