According to a new Section 80 TTA introduced in the union budget last year, savings account interest income up to Rs 10,000 will get a tax deduction as per this section. The savings account which you hold in all banks, that is public sector, private sector as well as foreign banks come under this section. That’s not all, the deduction is applicable even if it is in a co-operative bank or India Post.

Moreover, both individuals as well as Hindu undivided family qualify for this deduction.


All accounts: “Keep in mind, that this deduction of Rs 10,000 on savings account interest income is all bank accounts put together,” said Anil Rego, Chartered Accountant and CEO, CEO of Right Horizons, Investment Advisory and Wealth Management. There is a good possibility that you might be able to make the most of this deduction if you have parked your three-six months emergency funds in savings banks accounts. Many people do this.