How to Enter 80TTA Deduction in ITR-1
- Nimisha Panda
- Dec 15
- 8 min read
Section 80TTA allows a deduction of up to ₹10,000 on interest earned from savings bank accounts, and this benefit can be claimed directly inside ITR-1 under the Chapter VI-A deduction schedule. The rule applies to individuals and HUFs with interest income from savings accounts in banks, post offices, or cooperative societies. Interest from fixed deposits or recurring deposits is not covered under this section. Senior citizens use Section 80TTB instead. Accurate reporting of savings interest under “Income from Other Sources” and entering the correct deduction amount in the 80TTA field ensures the return is processed smoothly and without mismatch issues.
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How to Enter 80TTA Deduction in ITR-1
Entering the 80TTA deduction in ITR-1 begins with reporting the total interest earned from savings accounts and then claiming the eligible amount under the Chapter VI-A deduction schedule. The permitted limit under Section 80TTA is ₹10,000, and the ITR system automatically restricts the deduction to this cap. The process is simple, but accurate disclosure of interest income ensures smooth processing of the return. Digital platforms like TaxBuddy help organise interest details across multiple accounts and apply the deduction correctly, reducing the risk of tax mismatches.
Eligibility and Conditions for Claiming Section 80TTA
Eligibility for claiming Section 80TTA begins with identifying the type of taxpayer and the nature of the interest income earned. This deduction is available only to individuals and Hindu Undivided Families who receive interest from savings accounts maintained with banks, post offices, or cooperative societies. The law allows a maximum deduction of ₹10,000 in a financial year, and this limit applies to the combined interest from all eligible savings accounts, not on each account separately. Any savings interest above this threshold becomes fully taxable.
Interest earned from fixed deposits, recurring deposits, term deposits, or any other time-bound deposit does not qualify for Section 80TTA. These types of interest income must be declared separately and cannot be reduced using this deduction. For senior citizens aged 60 years and above, a separate provision—Section 80TTB—provides a higher limit of up to ₹50,000, covering not only savings interest but also interest from fixed deposits and post office schemes. Because of this special benefit, senior citizens are excluded from claiming Section 80TTA.
The interest eligible for Section 80TTA must first be reported under “Income from Other Sources” in the income tax return. This step is essential because the deduction can only be applied after the full interest amount has been disclosed. During filing, no supporting documents are required to be uploaded to the income tax portal. However, interest certificates from banks, annual bank statements, or passbook entries should be kept ready as evidence. These documents may be needed later if the department seeks clarification or if there is a mismatch with the Annual Information Statement (AIS).
Is Section 80TTA Allowed in the New Tax Regime?
Section 80TTA is permitted under the new tax regime, unlike several other Chapter VI-A deductions that are restricted. The deduction continues to provide relief on savings interest for taxpayers who opt for the new regime under Section 115BAC. Since most deductions are not available in this regime, 80TTA becomes one of the few remaining benefits. The amount allowed remains the same — a maximum of ₹10,000 — and is applied only on savings account interest.
How Section 80TTA Works in the Old Tax Regime
Under the old regime, Section 80TTA offers tax relief on interest earned from savings accounts up to ₹10,000 in a financial year. This benefit applies after reporting the entire interest under “Income from Other Sources.” If total savings interest exceeds ₹10,000, only the first ₹10,000 qualifies for deduction, and the remaining becomes taxable income. The old regime also offers the option to claim several other deductions, but 80TTA specifically focuses on savings account interest and is separate from benefits such as 80C or 80D.
Step-by-Step Process to Enter 80TTA Deduction in ITR-1
The process begins with identifying the interest from all savings accounts for the relevant financial year. Once the ITR-1 form is opened in the e-filing portal:
Report the full savings interest amount under “Income from Other Sources.”
Open the “Deductions” section under Chapter VI-A.
Locate the field for Section 80TTA specifically.
Enter the eligible deduction — either the actual interest earned or ₹10,000, whichever is lower.
Confirm that the system caps the deduction automatically if the reported interest exceeds the permissible limit.
Complete the remaining sections of the return and verify before submission.
Most modern tax platforms, including TaxBuddy, streamline this process through automated data checks and interest summaries.
Where to Report Savings Account Interest for 80TTA
Savings account interest is always reported under “Income from Other Sources” in ITR-1 before claiming the deduction. This ensures transparency and proper computation of taxable income. While entering this interest, all savings accounts must be included, whether from banks, post offices, or cooperative societies. Only after this reporting step can the 80TTA deduction be taken in the Chapter VI-A section. Correct classification is essential because misreporting may trigger discrepancies in the Annual Information Statement (AIS).
Common Errors While Claiming 80TTA in ITR-1
Several frequent mistakes can lead to errors in tax computation:
• Claiming 80TTA on fixed deposit or recurring deposit interest • Entering the deduction without first reporting interest under “Income from Other Sources” • Claiming the deduction multiple times for interest from different accounts • Confusing Section 80TTA with 80TTB for senior citizens • Reporting only partial interest while the bank reports the full amount in AIS
TaxBuddy’s automated checks help identify these errors by matching AIS data, pre-fill information, and bank-level reporting to ensure accuracy.
Difference Between 80TTA and 80TTB for Senior Citizens
Section 80TTA provides a deduction of up to ₹10,000 for savings account interest. Section 80TTB, on the other hand, applies only to senior citizens aged 60 or above and allows a higher deduction of up to ₹50,000. This expanded coverage includes interest from savings accounts, fixed deposits, and post office deposits for senior citizens. Non-senior individuals cannot claim 80TTB and must rely solely on 80TTA for savings account interest relief.
Can NRIs Claim Section 80TTA Deduction in ITR-1?
Non-Resident Indians can claim a deduction under Section 80TTA on interest earned from Non-Resident Ordinary (NRO) savings accounts. Interest earned from NRE or FCNR deposits is already tax-exempt and does not fall under this deduction. Only interest that is taxable can be reduced through Section 80TTA. NRIs must ensure that the interest amount is reported accurately in the return before applying the deduction.
How TaxBuddy Simplifies 80TTA Entry and Verification
TaxBuddy provides automated interest tracking across multiple accounts, identifies all savings interest reflected in AIS, and highlights eligible amounts for deduction. The platform prevents common reporting mistakes and ensures the correct limit is applied. Its AI-driven filing system supports error-free completion of ITR-1 and ensures compliance with the latest tax rules. This helps taxpayers avoid discrepancies and complete their returns with clarity and confidence.
Conclusion
Section 80TTA offers a useful deduction for taxpayers earning interest from savings accounts, provided the interest is reported correctly and the eligible amount is entered under the Chapter VI-A section. Simple steps and accurate classification help ensure a smooth filing experience, especially when supported by automated tools that cross-check income sources and prevent errors. For anyone looking for assistance in tax filing, it is highly recommended to download the TaxBuddy mobile app for a simplified, secure, and hassle-free experience.
FAQs
Q1. Does TaxBuddy offer both self-filing and expert-assisted plans for ITR filing, or only expert-assisted options? TaxBuddy offers both self-filing and expert-assisted ITR filing options to suit different taxpayer needs. The self-filing system is designed with AI-based guidance that helps users upload Form 16, pre-fill details, verify income, and complete the return without confusion. For individuals with complex profiles—including capital gains, multiple properties, business income, or foreign income—the expert-assisted plan provides professional support. TaxBuddy’s tax specialists review all entries, verify AIS/TIS mismatches, and prepare the return end-to-end to ensure accuracy and compliance.
Q2. Which is the best site to file ITR? The official Income Tax Department e-filing portal is the primary platform for all taxpayers. However, many individuals prefer using dedicated platforms such as TaxBuddy for a smoother experience. These platforms provide features like automated error checks, AIS reconciliation, guided steps, and expert review options that simplify the entire filing process. TaxBuddy is widely chosen by salaried individuals, freelancers, and senior citizens because of its ease of use and access to trained tax professionals.
Q3. Where to file an income tax return? An income tax return can be filed through the Income Tax Department’s e-filing portal or by using a trusted online platform that provides guided filing. Services like TaxBuddy simplify the workflow by pulling pre-filled data, validating entries, detecting mismatches, and offering expert consultations. These tools reduce the chance of filing errors and improve the accuracy of submissions.
Q4. Can savings interest be claimed without entering it in ‘Income from Other Sources’? Savings account interest must always be declared first under the “Income from Other Sources” section in the ITR. Only after this disclosure can the Section 80TTA deduction be claimed. If the interest is not reported and only the deduction is claimed, the return may trigger a mismatch in the Annual Information Statement (AIS), which could lead to notices or adjustments during processing.
Q5. What is the maximum deduction under Section 80TTA? Section 80TTA allows a deduction of up to ₹10,000 on interest earned from savings accounts in banks, cooperative societies, and post offices. This limit applies to the combined interest from all savings accounts held by the taxpayer. Any amount above ₹10,000 is fully taxable. The system automatically restricts the deduction to the allowable limit when filing ITR-1.
Q6. Are fixed deposit interests covered under 80TTA? Interest earned from fixed deposits or recurring deposits does not qualify for deduction under Section 80TTA. This section exclusively covers savings account interest. FD and RD interest is taxable in full and must be reported separately in the ITR. Senior citizens may claim relief on FD interest through Section 80TTB, but this benefit is not available to other individuals.
Q7. Is 80TTA applicable to both residents and NRIs? Section 80TTA is available to residents and Non-Resident Indians (NRIs), but with a specific condition. NRIs can claim this deduction only on interest earned from NRO savings accounts. Interest received on NRE or FCNR accounts is tax-exempt and therefore not eligible for 80TTA. NRIs must ensure proper reporting to avoid mismatches with AIS.
Q8. Can the deduction be claimed if savings interest is below ₹10,000? Yes. If savings account interest is less than ₹10,000, the actual amount earned can be claimed under Section 80TTA. The deduction does not require the amount to reach ₹10,000; it simply sets a maximum cap. For example, if the total interest earned is ₹4,800, the deduction allowed is ₹4,800.
Q9. Does the bank deduct TDS on savings account interest? No tax is deducted at source (TDS) on savings account interest, regardless of the amount earned. Although banks do not deduct TDS, the interest remains taxable and must be reported in the ITR. Once reported, the taxpayer may claim up to ₹10,000 as a deduction under Section 80TTA.
Q10. Can 80TTA be claimed under both old and new tax regimes? Section 80TTA is allowed under both the old and new tax regimes. This makes it one of the few deductions still available under the new regime, which has restrictions on many Chapter VI-A benefits. Taxpayers opting for either regime can reduce their taxable income using this deduction, provided the interest is from eligible savings accounts.
Q11. Is any proof required while claiming 80TTA? No documents are required to be uploaded while filing the ITR to claim Section 80TTA. However, taxpayers must keep bank statements or interest certificates as evidence, should the Income Tax Department request clarification later. Maintaining proper documentation ensures a smooth response in case of future scrutiny.
Q12. Can salaried taxpayers claim 80TTA in ITR-1? Salaried individuals are fully eligible to claim Section 80TTA in ITR-1, provided the interest arises from savings accounts. The interest should be reported accurately under “Income from Other Sources” before entering the deduction amount under Chapter VI-A. This benefit is commonly used by salaried individuals to lower their taxable income without any additional investment requirement.
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