A complete guide for Taxpayer on Difference between Section 80TTA and Section 80TTB  of Income Tax 

Introduction

Section 80TTA of the Income Tax Act is for HUFs, Individuals (but not Senior Citizens), and NRIs. However, Section 80TTB is only for seniors who are 60 years of age or older. This article includes information on Section 80TTA of the Income Tax Act, Section 80TTB under the Income Tax Act, and the Difference between Section 80TTB and Section 80TTA.

Section 80TTA of the Income Tax Act

Section 80TTA of the Income Tax Act, 1961 addresses the tax deductions for interest payments. Interest on savings accounts maintained by individuals (excluding senior citizen) or Hindu Undivided Families (HUF) is subject to this deduction. 10,000 rupees is the maximum deduction that can be made for all savings accounts.

Eligibility Criteria of Section 80TTA

The organizations listed below are eligible to deduct interest on all of their savings bank and post office accounts under Section 80TTA.

• HUF (Hindu Undivided Family)
• Individuals (excluding Senior Citizens)
• NRIs (Non-Resident Indians)

Note: Only NRE and NRO accounts can be opened in India by NRIs. On NRE accounts, interest is not subject to tax and the 80TTA advantage is restricted to NRO savings accounts. Please be aware that NRO term deposits do not permit deductions.

Section 80TTB under the Income Tax Act

A taxpayer who is a resident senior citizen and is 60 years of age or older can avail benefits under Section 80TTB. At any point during a Financial Year (FY), a senior citizen may deduct a certain amount from his gross total income for that FY under Section 80TTB.

Eligibility Criteria of Section 80TTB

The following people are qualified for Section 80TTB deductions:

• Taxpayers who fall under the senior citizen category (people aged above 60 years)
• Individuals from India
• Seniors with savings, fixed-deposit, or recurring deposit accounts
• A person holding the aforementioned accounts at cooperative societies, banks, or post offices

Difference between Section 80TTA and Section 80TTB 

FAQs on Section 80TTA and Section 80TTB

1. How does Section 80TTB work?

Section 80TTB is a provision that allows a taxpayer who is a resident senior citizen, aged 60 years or older, at anytime during a Fiscal Year (FY), to deduct a specified amount from his gross total income for that FY.

2. How many bank accounts may I deduct from my income under section 80TTA?

Section 80TTA relates to the amount of interest, not the number of accounts you maintain. As a result, the tax benefit can be claimed for as many accounts interest as there are totaling up-to INR 10,000.

3. Do I have to declare the interest I received on the money I kept in my savings account?

Yes, according to the Income Tax Act, any person for whom filing a return is applicable is required to disclose all of his income received during the reporting period and pay the related taxes.