Deduction under Section 80TTA & 80TTB of The Income Tax Act
Under Income Tax act if an Individual/HUF has a deposit in saving account, the interest received or earned on same is availed for deduction in total income. The sections are applicable for Individual/HUF assessee who has saving account with a bank/a co-operative society engaged in banking business or a post office saving account (not being time deposits, which are repayable on expiry of fixed periods).
The deductions are classified in two sections – Section 80TTA & Section 80TTB. Section 80TTB applies to senior citizen Individual.
Eligible Assessee: Individual/HUFs (except senior citizen)
Amount of deduction: Actual Interest but subject to maximum 0f Rs 10000 i.e. amount of permissible deduction will be actual interest received or Rs 10000, whichever is lower.
Eligible Assessee: Senior Citizen
Amount of deduction: Actual Interest but subject to maximum 0f Rs 50000 i.e. amount of permissible deduction will be actual interest received or Rs 50000, whichever is lower.