Section 80TTA deduction can be claimed by individuals and HUFs having interest income on savings account (not being time deposits). The maximum deduction allowed under this section is Rs.10,000.

Eligibility for Deduction under Section 80TTA

Interest on Savings Account

Interest income received from a savings account deposit is eligible for deduction under Section 80TTA. The savings account deposit can be maintained with a public sector bank, private sector bank, cooperative society or post office.

Interest on Bank Deposits

Interest earned on a bank fixed deposit or time deposit will not be eligible for deduction under Section 80TTA. Time deposits mean deposits repayable on expiry of fixed periods.