The difference in one table
Both deductions cover interest income, but they apply to different taxpayers and to different kinds of interest. A taxpayer claims one or the other, never both.
| Section 80TTA | Section 80TTB | |
|---|---|---|
| Who can claim | Individuals and Hindu undivided families below 60 | Resident senior citizens, 60 and above |
| Interest covered | Interest on savings accounts only | Interest on savings accounts and on deposits, including fixed and recurring deposits |
| Maximum deduction | ₹10,000 | ₹50,000 |
| Fixed deposit interest | Not covered | Covered |
| Available under the new regime | No | No |
Why a senior citizen should not claim 80TTA
A senior citizen is eligible for the larger and wider deduction under 80TTB, which covers deposit interest as well as savings interest and has a higher limit. Claiming 80TTA instead gives up most of that. The two are mutually exclusive, so the choice has to be made deliberately rather than by habit.
Both are deductions, not exemptions
The interest is still income and still has to be reported in the return. The deduction reduces taxable income afterwards. This matters because the interest appears in the Annual Information Statement, and a return that omits it produces a mismatch notice even where the deduction would have covered the tax.
Neither is available under the new regime
Both deductions belong to the old regime. A taxpayer with substantial interest income, particularly a senior citizen with deposits, should compare the two regimes with the deduction included before electing.
Check before you rely on this
Rates, limits and dates change by notification, and some are extended part-way through a year. This table is a summary for general information, not a statement of the law for your case. Confirm the current position from the official source below, or ask us.
Income Tax Department