Section 80TTA of Income Tax Act
Under Section 80TTA to allows deduction on the interest earned on your savings account with a bank, cooperative society, or post office.
The deduction shall not be allowed for Interest from fixed deposits(FD), Interest from recurring deposits(RD), Any other time deposits (Time deposits mean deposits repayable on the expiry of fixed periods).
This Section is only for below 60 age of an individual or HUF. It is not applicable to senior citizens.
NRIs can also avail a deduction under this Section.
NRIs can open NRE and NRO accounts in India. Interest earned on NRE accounts is tax-free. Hence, the benefit is available only on the NRO savings accounts. No deduction is allowed on NRO term deposits (fixed deposits).
The maximum deduction is limited to Rs 10,000.
It is applicable only an Old Regime.