ITR Filing 2025: Want To Claim Tax Exemptions On Interest Income? Here’s How You Can Do It

New Delhi: The deadline for filing Income Tax Returns (ITR) is just around the corner September 15, 2025 and taxpayers are in a rush to organize documents and claim deductions. Among the many ways to save on taxes, interest income often creates confusion. Thankfully, the Income Tax Act offers relief under two key sections: Section 80TTA and Section 80TTB. Knowing the difference between these provisions can help you reduce your tax burden and make the most of your savings.

Here’s a simple guide to help you understand these sections and use them to your advantage while filing your tax returns before the deadline:

Section 80TTA

If you’re below 60 years of age, you can claim a deduction of up to Rs 10,000 on the interest earned from your savings bank account. This benefit is available to both individuals and Hindu Undivided Families (HUFs), but only under the old tax regime. Keep in mind, this deduction is limited to savings account interest—it does not cover fixed deposits, recurring deposits, or corporate bonds.

Section 80TTB

For senior citizens (60 years and above), the benefit is much higher. They can claim a deduction of up to Rs 50,000 on interest income from all types of deposits—including savings accounts, fixed deposits, and recurring deposits. (Also Read: CBIC Clears Air On Input Tax Credit: No ITC Reversal Needed On Post-Sale Discounts)

How to Claim

When filing your Income Tax Return (ITR), make sure to report your interest income under the head “Income from Other Sources.” After that, you can claim the eligible deduction under Section 80TTA or Section 80TTB in the respective section of the ITR form. This ensures your tax savings are correctly applied.

What If You Miss the September 15 Deadline?

Don’t worry—if you miss the ITR deadline, you can still file your return by submitting a belated return. This provision by the Income Tax Department ensures taxpayers get another chance to report their income and pay taxes. However, late filing comes with a few drawbacks you should be aware of. (Also Read: Struggling With ITR Tech Glitches? Here’s How To File Before Sept 15 Without Hassle)

Penalty for Late Filing

Missing the ITR deadline can cost you extra. Under Section 234F of the Income Tax Act, a penalty is applied when you file a belated return:

– If your total income is above Rs 5 lakh, the penalty can go up to Rs 5,000.

– If your total income is below Rs 5 lakh, the penalty is Rs 1,000.