Section 80TTA: Deduction for Savings Account Interest

Purpose: Allows deduction on interest income from savings accounts to reduce taxable income. Eligibility: Available to resident individuals below 60 years and HUFs.

Maximum Deduction: Up to INR 10,000 per financial year. Types of Income: Eligible for interest from savings accounts with banks, cooperative societies, and post offices. Exclusions: Interest from fixed deposits, recurring deposits, and other time deposits not eligible.

Calculation: If interest income is less than INR 10,000, the entire amount can be claimed as deduction. Documentation: Maintain records of bank statements and interest certificates for verification.

Claim Process: Include total interest earned in your ITR under "Income From Other Sources" and claim deduction under section 80TTA accordingly.