Income Tax: Do NOT miss THIS additional Rs 60,000 deduction while ITR filing for FY 2025

Income Tax: While everybody knows about the most popular Section 80C income tax deduction among some other tax-saving provisions, very little is known about the savings that could be made using Section 80TTA and 80TTB of the income tax act. Here's all that you need to know for claiming deduction under these sections.

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Authored by: Himanshi Singh

Updated May 28, 2025 18:36 IST

Income tax

Income Tax: Do NOT miss THIS additional Rs 60,000 deduction while ITR filing for FY 2025

Income Tax : The ITR filing 2025 season has finally started now that the Central Board of Direct Taxes (CBDT) has notified the forms for the financial year 2025 (assessment year 2025-26). Now, in a big relief for the taxpayers, CBDT also extended the deadline to file the income tax return for FY 2025.
It is also the time when tax payers and salaried individuals all across the country will start or have already started looking for ways to income tax and reduce their tax outgo. There are a number of knowns provisions using which they can save tax on their total income for the year, however, not many people know about the Section 80TTA and 80TTB.
Using these sections, taxpayers can save up to Rs 60,000.
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Income Tax Deductions in ITR Filing 2025

While everybody knows about the most popular Section 80C income tax deduction among some other tax-saving provisions, very little is known about the savings that could be made using Section 80TTA and 80TTB of the income tax act. Section 80TTA allows a deduction from the interest income earned from the deposits in a savings bank account.
Section 80TTB, on the other hand, allows taxpayers to claim income tax exemption on the interest income earned from any bank deposits, including fixed deposit.
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Rs 60,000 Income Tax Savings

Using Section 80TTA, an assessee can claim an income tax deduction of an amount which is equal to the interest credited to their savings account or Rs 10,000, whichever is lower. Under Section 80TTB, the individual can claim a deduction of an amount equal to interest credited to his account or Rs 50,000, whichever is lower.
When combined together, the two sections can help taxpayers save Rs 60,000 in tax.

Income Tax Deduction Under 80TTA, 80TTB

To claim an income tax deduction under Section 80TTA, an individual or HUF needs to have interest income on deposits in a saving account held with a banking company; a co-operative society; or a post office.
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Deduction under this provision is not available to any person other than an Individual or HUF.
Those eligible to claim deduction under Section 80TTB include individuals, being a senior citizen, deriving income in the nature of interest on bank deposits. This deduction is available to only those senior citizens who are residents in India. Senior citizen means a resident individual whose age is 60 years or more at any time during the previous year.

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