Tax filing tips: How to claim exemptions on interest income

When it comes to interest income, two sections of the Income Tax Act can provide relief: Section 80TTA and Section 80TTB.

As the deadline for filing income tax returns (ITR) approaches, i.e. September 15, 2025 - taxpayers are busy gathering documents and claiming deductions. When it comes to interest income, two sections of the Income Tax Act can provide relief: Section 80TTA and Section 80TTB. Understanding these sections can help taxpayers maximize their tax savings.

Here's a breakdown of what you need to know about these sections and how you can benefit when filing your tax returns by the deadline.

Section 80TTA

Taxpayers below 60 years old can claim a tax exemption of up to Rs 10,000 on savings bank interest income. This section applies to individuals and Hindu Undivided Families (HUFs) and is available only under the old tax regime. It’s important to note this only applies to interest earned from savings bank accounts, not fixed deposits, recurring deposits or corporate bonds.

Section 80TTB

Senior citizens (60 years and above) can claim a tax exemption of up to Rs 50,000 on interest income from all types of deposits, including savings accounts, fixed deposits, and recurring deposits.

Also read | Last-minute ITR rush overwhelms portals, millions of returns still pending

How to claim?

While filing your Income Tax Return (ITR), report interest income under "Income from Other Sources" and claim deductions under Section 80TTA or 80TTB in the relevant section of the ITR form.