The 80TTA Calculator helps you calculate the deductions you can claim on interest earned from your savings account. By planning your taxes effectively, you can reduce your taxable income and save more!

What is Section 80TTA?

Section 80TTA of the Income Tax Act, 1961, provides a deduction for interest income earned on savings accounts held in banks, cooperative societies, or post offices. This section ensures taxpayers can benefit from tax relief on modest savings.

What is the 80TTA Calculator?

The 80TTA Calculator is a simple yet powerful tool designed to:

• Help you calculate eligible deductions on interest earned from savings accounts.
• Plan your taxes in advance by determining how much you can save under Section 80TTA.
• Ensure you comply with tax regulations, especially if you have multiple savings accounts.

Eligible Financial Institutions for 80TTA Deduction:

• Banks
• Cooperative societies
• Post offices

How to Calculate 80TTA Deductions?

The 80TTA deduction allows taxpayers to claim a maximum of Rs. 10,000 per financial year on interest income from savings accounts. Here’s an example to make it clearer:

Example Calculation

1. Salary Income: Rs. 5,00,000
   • Standard Deduction: Rs. 50,000
   • Net Income from Salary: Rs. 4,50,000
2. Interest Income from Other Sources:
   • Savings Account Interest: Rs. 5,000
   • Fixed Deposit Interest: Rs. 15,000
   • Total Other Income: Rs. 20,000
3. Deductions under Chapter VI-A:
   • Section 80C: Rs. 10,000
   • Section 80TTA: Rs. 5,000 (Savings account interest is less than Rs. 10,000)
4. Taxable Income: Rs. 4,55,000

Note: If interest earned exceeds Rs. 10,000, the deduction under 80TTA will still be capped at Rs. 10,000.

Who Can Use the 80TTA Calculator?

To use the 80TTA Calculator, you must meet the following eligibility criteria:

• Individual or HUF: Applicable for individuals or Hindu Undivided Families.
• Age Limit: Taxpayer must be below 60 years (senior citizens can claim deductions under Section 80TTB).
• NRO Savings Account Holders: Non-resident Indians with NRO accounts are also eligible.
• Old Tax Regime: The calculator is valid only if you have opted for the old tax regime.
• Interest Income: You must have earned interest income from a savings account.

Difference Between Section 80TTA and Section 80TTB

Benefits of Using the 80TTA Calculator

• Quickly determine your eligible deduction under Section 80TTA.
• Simplify tax calculations by accurately identifying deductible interest.
• Plan ahead to maximize tax savings.

Steps to Claim Deductions Under Section 80TTA

1. Include Interest Income in Returns: Add total interest income under ‘Income from Other Sources’ in your ITR.
2. Calculate Gross Total Income: Aggregate income from all heads for the financial year.
3. Show Deduction Under Section 80TTA: Deduct the eligible interest amount (up to Rs. 10,000) to calculate taxable income.

Use our 80TTA Calculator to simplify your tax planning and unlock more savings on your interest income. Stay informed, stay tax-efficient, and make every rupee count!