Rules, tax & how-to
Tax on Savings Account Interest (80TTA / 80TTB)
Savings interest is taxable but has no TDS — ₹10,000 deduction under 80TTA, ₹50,000 for seniors under 80TTB, new vs old regime and reporting.
Updated 30 September 2026 · 26 banks trackedBest effective rate on ₹10 lakh
5.65%
IDFC FIRST BankWhat you need to know
Interest on savings accounts is taxable as “income from other sources”. Banks do not deduct TDS on it, so you must report it in your return. In the old regime, individuals below 60 can deduct up to ₹10,000 (80TTA) and seniors up to ₹50,000 including FD/RD interest (80TTB). The new regime offers neither deduction.
Tax treatment
| You are | Deduction | TDS |
|---|---|---|
| Below 60, old regime | Sec 80TTA — up to ₹10,000 of savings-account interest deductible | No TDS on savings interest |
| 60+, old regime | Sec 80TTB — up to ₹50,000 of interest from savings + FD + RD deductible | No TDS on savings interest; ₹1 lakh threshold on FD/RD |
| Any age, new regime | No 80TTA/80TTB; interest taxed at slab rate (rebate makes income up to ₹12 lakh tax-free) | No TDS on savings interest |
Reporting and compliance
- Check savings interest in your AIS / Form 26AS — banks report it to the tax department.
- Cash deposits aggregating ₹10 lakh or more in a financial year in savings accounts are reported by banks to the Income Tax Department (SFT).
- PAN is required for cash deposits above ₹50,000 in a day; PAN or Aadhaar for cash deposits/withdrawals aggregating ₹20 lakh in a financial year.
Frequently asked questions
Is TDS deducted on savings account interest?
No. But the interest is taxable and must be reported.
Can I claim 80TTA in the new regime?
No, it is available only in the old regime.
For information and comparison only. Confirm rates, charges and rules with your bank.