Section 80TTA Calculator – Calculate Tax Deduction on Savings Account Interest
The Section 80TTA Calculator works out your deduction as the lower of your total savings-account interest or ₹10,000. It applies to individuals under 60 and HUFs under the old tax regime. For FY 2026-27, the same rule sits in Section 153 of the Income-tax Act, 2025.
Savings interest is easy to overlook: banks credit it in small instalments, TDS rarely touches it, and the total only shows up at return time. This Section 80TTA Calculator turns your passbook totals into the deduction you can claim, the interest that stays taxable and a rough tax saving. The sections below cover the FY 2026-27 rules, the move from 80TTA to Section 153, and a filing checklist.
What Is a Section 80TTA Calculator?
A Section 80TTA calculator applies one rule to your savings-bank interest and shows what is left to tax. In plain terms, it is a savings account interest tax calculator built for a single deduction: you enter the interest, pick your category, and it returns the deduction, the taxable balance and a rough tax saving.
The formula behind it:
80TTA deduction = lower of total eligible savings interest or ₹10,000
Taxable interest balance = total savings interest − deduction
Estimated tax saving = deduction × your slab rate × 1.04 (the 1.04 adds 4% health and education cess)
The tool does not know your salary, your other deductions or your surcharge. Treat it as a fast answer to one question, not a full return. For the bigger picture, run the same year through our income tax calculator for old and new regimes.
How to Use the Section 80TTA Calculator
To use this Section 80TTA deduction calculator, work through five inputs and outputs:
1
Choose the Taxpayer Type
Individual below 60 and HUF get the ₹10,000 limit. If you pick senior citizen, the tool shows the senior-citizen deduction instead, because resident seniors cannot use 80TTA.
2
Enter Total Savings Interest for the Financial Year
Add every savings account at banks, co-operative banks and the post office. Your bank’s interest certificate, passbook or the Annual Information Statement (AIS) on the income-tax e-filing portal will have the figures. Seniors who want an estimate should enter interest on all deposits, FDs included.
3
Select the Tax Regime
The old regime gives the deduction. The new regime returns zero.
4
Select Your Slab
The saving depends on your highest slab: 5%, 20% or 30%. Not sure? Check your old-regime taxable income first.
5
Read the Three Results
Eligible deduction, taxable interest balance and estimated tax saving.
One adjustment before you type: post office savings interest has its own exemption (explained below), so subtract the exempt part first.
Section 80TTA Deduction Limit for FY 2026-27
The Section 80TTA deduction limit is ₹10,000 a year per eligible taxpayer, counted across all savings accounts combined. The Section 80TTA of the Income-tax Act, 1961 states it, and Section 153 of the Income-tax Act, 2025 repeats the same ceiling in sub-section (2)(a).
| Financial year | Law that applies | Section to quote | Limit |
|---|
| FY 2025-26 (AY 2026-27) | Income-tax Act, 1961 | 80TTA | ₹10,000 |
| FY 2026-27 onward (tax year 2026-27) | Income-tax Act, 2025, in force from 1 April 2026 | 153(2)(a) | ₹10,000 |
Same limit, new section number
The 2025 Act folds 80TTA and 80TTB into a single Section 153. The amounts stayed put: ₹10,000 on savings interest for non-seniors and HUFs, ₹50,000 on all deposit interest for senior citizens. Only the label moved. For Section 80TTA FY 2026-27 purposes, read Section 153. Bank letters and older articles still say 80TTA, so quote the section that matches the year you are filing.
Who Can Claim Deduction Under Section 80TTA?
Individuals who are not senior citizens, and Hindu undivided families (HUFs), can claim the 80TTA savings interest deduction. Age and regime decide most cases.
Individuals under 60 qualify. Turn 60 mid-year and you count as a senior citizen for that whole year, because the test is age at any time in the year.
HUFs qualify on interest in the HUF’s own savings accounts.
80TTA for senior citizens is not available to residents aged 60 or above. They claim under 80TTB (Section 153(1)(b) from FY 2026-27) instead.
Non-resident individuals can claim it on NRO savings interest. The section excludes only the resident senior citizen covered by 80TTB, so a non-resident aged 62 is not shut out. That is our reading of the wording, not an official clarification.
Firms, AOPs and BODs cannot pass on their savings interest to partners or members for this deduction.
New-regime filers cannot claim it at all.
Which Savings Account Interest Qualifies for 80TTA?
Only interest on a savings account, with a bank, a co-operative bank or a post office, qualifies. The test is the type of account, not the size of the balance.
| Interest source | Qualifies? | Why |
|---|
| Savings account, bank (public, private, small finance) | Yes | Account is with a banking company |
| Savings account, co-operative bank | Yes | Named in the section |
| Post office savings account | Yes, after the post office exemption | Named in the section |
| NRO savings account | Yes | Taxable in India |
| Fixed or recurring deposit | No | Time deposit |
| Auto-sweep or flexi-FD portion | Generally no | Fixed-period deposit under the hood |
| NBFC or fintech “savings” product | No | Not a bank deposit |
| Interest on an income-tax refund | No | Not a savings account |
Post office savings interest gets a head start: ₹3,500 on a single account or ₹7,000 on a joint account is exempt before 80TTA is applied, as tax experts quoted by Outlook Money explain.
How Is Savings Account Interest Taxed?
Savings-bank interest is taxable in full under the head Income from Other Sources, at your slab rate. It becomes part of gross total income whether or not any TDS was cut, and the 80TTA deduction is taken off afterwards.
Banks generally do not deduct TDS on savings-account interest, which is why people forget it. FD interest is different and has its own TDS rules. The absence of TDS never makes the interest tax-free.
People often search for a savings bank interest tax exemption. What exists is a deduction, plus a separate exemption for post office savings. To see how much tax is saved under 80TTA, here is what the full ₹10,000 deduction is worth at each old-regime slab, the same maths an 80TTA tax benefit calculator runs:
| Your slab | Deduction | Tax saved (with 4% cess) |
|---|
| 5% | ₹10,000 | ₹520 |
| 20% | ₹10,000 | ₹2,080 |
| 30% | ₹10,000 | ₹3,120 |
These figures leave out surcharge. They also assume you owe tax at that slab. Under the old regime, a resident individual with taxable income up to ₹5 lakh gets a rebate of up to ₹12,500, so the extra saving can be nil.
Section 80TTA Calculator Example
An income tax 80TTA calculator is only as good as its inputs, so here are three worked cases.
Example 1: interest above the limit
Meera, aged 38, earns ₹14,000 of interest across two savings accounts.
- Total savings interest: ₹14,000
- 80TTA deduction: lower of ₹14,000 or ₹10,000 = ₹10,000
- Remaining ₹4,000 is taxable under Income from Other Sources
- At the 20% slab, the tax saved is ₹10,000 × 20% × 1.04 = ₹2,080
Example 2: bank plus post office
Arjun earns ₹8,000 from a bank savings account and ₹6,000 from a single post office savings account.
- Post office exemption: ₹3,500, so ₹2,500 of that interest is included in income
- Savings interest to be considered: ₹8,000 + ₹2,500 = ₹10,500
- 80TTA deduction: ₹10,000; taxable balance: ₹500
- A shortcut that ignores the exemption would show ₹4,000 taxable, a ₹3,500 overstatement
Example 3: savings plus FD
Nisha, aged 45, has ₹7,500 of savings interest and ₹30,000 of FD interest. Her deduction is ₹7,500. The ₹30,000 of FD interest stays fully taxable.
Section 80TTA vs Section 80TTB
Section 80TTA covers savings interest for people under 60 and HUFs, with a ₹10,000 limit. Section 80TTB covers all deposit interest for resident senior citizens, with a ₹50,000 limit. A taxpayer uses one, never both.
| Feature | Section 80TTA | Section 80TTB |
|---|
| Eligible taxpayer | Individuals who are not resident seniors; HUFs | Resident senior citizens (60+) |
| Eligible interest type | Savings accounts only | Savings accounts and time deposits (FD, RD) |
| Maximum deduction | ₹10,000 | ₹50,000 |
| Tax regime | Old regime only | Old regime only |
| Section from FY 2026-27 | 153(2)(a) | 153(2)(b) |
A senior with ₹32,000 from savings and ₹38,000 from FDs has ₹70,000 of eligible interest, so the deduction is capped at ₹50,000. The same person at 59 would have got ₹10,000 under 80TTA and paid tax on the rest.
Section 80TTA in Old Tax Regime vs New Tax Regime
The 80TTA old tax regime rule is simple: the deduction exists only if you opt for the old regime. The new regime, now in Section 202 and the default, withholds most Chapter VIII deductions, as the ICAI’s Chartered Accountant Journal sets out.
| Point | Old regime | New regime (default) |
|---|
| 80TTA / Section 153 deduction | Allowed | Not allowed |
| Savings interest | Taxed at old slabs after deduction | Taxed at new slabs, no deduction |
| Post office savings exemption | Reported as available | Reported as available |
Do not switch regimes for this deduction alone. At the 30% slab it saves ₹3,120 at most. Compare your whole picture instead: 80C, 80D, HRA, home-loan interest and the standard deduction against the lower new-regime rates. Our 80C calculator and Section 80D calculator help you total up the old-regime side.
Run both regimes with your full numbers before you decide. Tax planning support is available if the maths gets tangled.
How to Claim Section 80TTA While Filing ITR
You claim the deduction in your return by reporting all savings interest as income first, then entering the deduction against it. Follow these steps:
1
Collect Interest Figures
Collect interest figures from passbooks, bank certificates and the AIS.
2
Report the Total
Report the total under Income from Other Sources.
3
Choose the Old Tax Regime
The deduction is not available under the new regime.
4
Enter the Deduction
Enter the deduction (₹10,000 or the actual interest, whichever is lower) in the deductions schedule.
5
Show Post Office Exempt Interest
Show any post office exempt interest in the exempt-income schedule.
Which section number? A return for FY 2025-26 uses Section 80TTA. A return for FY 2026-27 uses Section 153. Confirm the row label when the tax year 2026-27 return forms open.
Filing late matters here. The belated-return window for AY 2026-27 closes on 31 December 2026. A person without business income who files after the due date is, according to widely published guidance, taxed under the new regime, which would take the 80TTA claim away. See our guide to belated ITR filing before you leave it late.
Mistakes that cost people the claim
Counting FD or sweep interest as savings interest
Applying ₹10,000 to each account instead of once
Leaving out a dormant or rarely used account
Skipping the interest because no TDS was cut
Claiming under the new regime
Using 80TTA when 80TTB applies
Need a hand? LegalDev India is a private consultancy, not a government body. If you would like a professional to check your deductions and file, start with individual ITR filing, or ask a question through our free consultation form.
FAQs
₹10,000 for the whole year, counted across all your savings accounts together. Two accounts do not earn two limits. If your combined interest is ₹6,500, all of it is deductible; at ₹14,000, the deduction stops at ₹10,000.
Yes, from tax year 2026-27. The Income-tax Act, 2025 came into force on 1 April 2026 and merges Sections 80TTA and 80TTB into Section 153, with the same ₹10,000 and ₹50,000 limits. Returns for FY 2025-26 still follow Section 80TTA of the 1961 Act.
No. The section leaves out time deposits, so FD and recurring deposit interest stays fully taxable for anyone under 60. Only senior citizens can deduct it, under Section 80TTB (Section 153(1)(b) from FY 2026-27), up to ₹50,000.
Resident senior citizens, meaning those aged 60 or more at any time in the year, cannot claim 80TTA. They use 80TTB instead, which allows up to ₹50,000 on savings and deposit interest. You cannot claim both.
No. The new regime under Section 202 is the default and it does not allow this deduction. You must opt for the old regime to claim it; under the new regime, savings interest is taxed at slab rates.
An NRI who is an individual can claim it on NRO savings interest, which is taxable in India. NRE savings interest is already exempt for a non-resident, so there is nothing to deduct. This follows the section’s wording, which excludes only resident senior citizens.
Deduction × slab rate × 1.04 for cess. A full ₹10,000 deduction saves about ₹520 at the 5% slab, ₹2,080 at 20% and ₹3,120 at 30%, before surcharge. If your old-regime tax is already nil because of the rebate, the extra saving is zero.