{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.indusind.com\/iblogs\/savings-account\/how-to-avail-tax-benefits-on-savings-account-interest-income\/#BlogPosting","mainEntityOfPage":"https:\/\/www.indusind.com\/iblogs\/savings-account\/how-to-avail-tax-benefits-on-savings-account-interest-income\/","headline":"How to avail tax benefits on Savings Account Interest Income","name":"How to avail tax benefits on Savings Account Interest Income","description":"A savings account is a simple and secure banking product that enables us to park funds, earn interest on the deposited money, and access it as and when needed. It offers the freedom to make cashless transactions via debit card, online transfers via UPI, NEFT, IMPs and withdraw cash from the ATM while serving as...","datePublished":"2022-12-14","dateModified":"2024-09-03","author":{"@type":"Person","@id":"https:\/\/www.indusind.com\/iblogs\/author\/indusind\/#Person","name":"IndusInd Bank","url":"https:\/\/www.indusind.com\/iblogs\/author\/indusind\/","image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/8169561f34fb61e737060f1a537a86e2?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/8169561f34fb61e737060f1a537a86e2?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"IndusInd","logo":{"@type":"ImageObject","@id":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/logo-2.png","url":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/logo-2.png","width":201,"height":86}},"image":{"@type":"ImageObject","@id":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/SA_iBlog-Banner_1060X400_1.jpg","url":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/SA_iBlog-Banner_1060X400_1.jpg","height":400,"width":1060},"url":"https:\/\/www.indusind.com\/iblogs\/savings-account\/how-to-avail-tax-benefits-on-savings-account-interest-income\/","about":["Savings Account"],"wordCount":829,"keywords":["interest rate on saving account","Savings account","savings account interest rate","tax","tax deduction","tax exemption"],"articleBody":"A savings account is a simple and secure banking product that enables us to park funds, earn interest on the deposited money, and access it as and when needed. It offers the freedom to make cashless transactions via debit card, online transfers via UPI, NEFT, IMPs and withdraw cash from the ATM while serving as a source of regular interest.The interest income that one earns from investments in fixed deposits (except tax saver FDs), recurring deposits, or corporate bonds are subject to taxation and the details of the same also need to be disclosed while filing income tax returns. However, when it comes to interest earned from savings account, one could claim certain deductions that may reduce the tax liability.These deductions are offered by the Income Tax Department to encourage savings and investments amongst the taxpayers. Before we proceed to these deductions, it is important to understand how interest income on savings account is taxed.How is interest on savings account taxed?The money that one earns from the interest on savings account fall under a residual income category in income tax returns called \u2018income from all the other sources.\u2019 The total income is then taxed according to the relevant tax bracket.However, if the total interest income is below Rs. 10,000 then there is no need to pay tax on it.But what if a taxpayer has multiple savings accounts, with various banks, each having the interest income is below Rs. 10,000 limit? It is important to remember that the available deductions are applicable on the total interest earned through all the savings bank accounts. Tax free interest income cannot be availed by having multiple savings accounts where the interest earned remains below the given limit.Tax deduction that can be claimed on savings account interestTo minimise the total tax outgo, individuals can claim deductions on their interest income under the sections 80TTA and 80TTB. While section 80TTA was introduced in the finance bill of 2013, the latter came into existence only in 2018 with the aim to increasing liquidity amongst the senior citizens.Section 80TTAMaximum deduction amount – A maximum deduction of Rs. 10,000 is allowed on the total interest income earned from all savings accounts. Interest earned beyond Rs. 10,000 from any of these sources shall be taxable.Eligibility – The deduction is allowed only to individuals and Hindu Undivided Families. Companies or firms are not eligible for the same. Senior citizens cannot claim deduction under 80TTA as they must claim it under 80TTB.Section 80TTBMaximum deduction amount \u2013 This section allows a deduction of up to Rs. 50,000 on the amount interest earned in a financial year.Eligibility – The deduction is allowed only to senior citizens, i.e individuals above the age of 60.Savings account is a great way to get periodic return on your money while making sure it is accessible to at all times. With IndusInd Bank, you can now open a savings account with attractive interest rates on your deposits instantly. So, what are you waiting for?Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision.  IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct\/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.   Share This:"}