Section 153
Section 153: deduction for interest on bank, co-operative and post office deposits
Section 153 is the Income-tax Act, 2025's version of two deductions taxpayers previously knew separately as "80TTA" (savings account interest) and "80TTB" (senior citizen deposit interest) - the new Act combines both into one section, with the applicable limit depending on whether the assessee is a senior citizen.
The two limits
The deduction applies to interest earned on deposits with a bank, a co-operative society carrying on banking business, or a Post Office.
| Assessee | What qualifies | Limit |
|---|---|---|
| Individual (not a senior citizen) or HUF | Interest on savings accounts only (not time/fixed deposits) | ₹10,000 |
| Individual, being a senior citizen | Interest on any deposit account, including time/fixed deposits | ₹50,000 |
Key conditions
- For a non-senior-citizen individual or an HUF, only savings account interest counts - fixed/time deposit interest is excluded entirely from this deduction.
- For a senior citizen, the higher ₹50,000 limit covers interest from any account, including fixed and time deposits, not just savings accounts.
- Where a savings account or deposit is held on behalf of a firm, an association of persons, or a body of individuals, no partner or member can separately claim this deduction for that income in their own individual return.
Frequently asked questions
Is this the same as "80TTA" and "80TTB"?
Yes - Section 153 of the Income-tax Act, 2025 combines what used to be two separate sections (80TTA for regular taxpayers, 80TTB for senior citizens) into a single provision with two different limits depending on age.
Can I claim ₹10,000 on my fixed deposit interest?
Not unless you're a senior citizen. For a non-senior individual or HUF, only savings account interest qualifies - fixed/time deposit interest doesn't count toward this deduction at all.
What's the deduction limit for a senior citizen?
₹50,000 on interest from any deposit account - savings, fixed, or time deposits - with a bank, co-operative bank, or Post Office.
Want this applied to your actual filing, not just explained?
Check your Section 153 deposit interest deduction with our tax teamLast updated 9 September 2026