Savings Account Tax Exemption (80TTA): Who Qualifies and What You Get
Learn how to claim a tax deduction on the interest earned from your savings accounts to help reduce your taxable income.
This scheme allows individuals to claim a deduction on the interest earned from their savings accounts, reducing the total amount of income subject to tax.
Who it's for
This benefit is available to individuals who are under the age of 60.
What you get
You can claim a tax deduction on the interest income you earn from your savings accounts. This deduction applies to interest amounts up to ₹10,000.
What it costs you
There is no direct fee to use this scheme. However, you must remember to claim this deduction while you are filing your annual income tax return.
The catch to know
This exemption only applies to interest earned on savings accounts. It does not apply to interest earned from fixed deposits.
How to apply
- Track the total interest earned from all your savings accounts throughout the year.
- Ensure the total amount does not exceed the limit set by the government.
- Report this interest and the corresponding deduction when you file your income tax return.