Section 80TTA of the Income Tax Act allows taxpayers in India to enjoy deductions on their savings. The amount of deduction claimed under Section 80TTA is capped at Rs 10,000. The 80TTA deduction is over and above the Rs 1.5 lakhs limit prescribed under Section 80C. What is Section 80TTA Deduction?

The Income Tax Act of 1961’s Section 80TTA addresses the tax deductions for interest payments. Interest on savings accounts maintained by individuals (excluding senior citizens) or Hindu Undivided Families is subject to this deduction. There is an INR 10,000 maximum deduction that can be made for all savings accounts.

What is Section 80TTA Deduction? 80TTA provides for ‘deduction in respect of interest on deposits in savings account’ in the income tax law. 80TTA deduction can be claimed on any number of savings held in banks, post office or cooperative societies, for an amount up to Rs 10,000. What Is the Maximum Deduction Acceptable Under Section 80TTA?