Interest earned from a savings bank account must be reported as income while filing your Income-tax Return. An eligible taxpayer may also claim a deduction under Section 80TTA against such interest.

When you enter eligible savings bank interest on myITreturn, the system automatically considers the deduction under Section 80TTA based on the details entered, the taxpayer’s eligibility and the tax regime selected. This reduces the need to enter the deduction separately.

Steps to add savings bank interest on myITreturn

Step 1: Select the member

Log in to myITreturn.com and select the member or taxpayer for whom the Income-tax Return is being prepared.

Step 2: Continue with Self Filing

Click Continue Self Filing to proceed with preparing the Income-tax Return.

Step 3: Open “Income from Bank Interest”

Go to the applicable income section and click Income from Bank Interest.

Step 4: Add the bank interest income

Click the option to add bank interest income details.

Select the correct nature of the interest. For Section 80TTA, the amount should be reported as savings bank interest and not as fixed-deposit or recurring-deposit interest.

Step 5: Enter the details and click “Save”

Enter the bank name and the savings account interest earned during the relevant financial year. If interest was earned from multiple savings accounts, enter all applicable amounts.

Review the information and click Save.

Step 6: Review the Section 80TTA deduction

Open the detailed tax computation after saving the interest income. Where you are eligible, the deduction considered under Section 80TTA will be displayed in the deduction section of the computation.

The deduction will generally be restricted to:

Eligible savings bank interest or ₹10,000, whichever is lower.

Example of Section 80TTA deduction

The full savings interest of ₹14,000 must first be reported under income from other sources. The eligible deduction of ₹10,000 is then considered separately under Section 80TTA.

Important points to remember

• Report the complete savings interest income before claiming the deduction.
• Do not enter only the amount exceeding ₹10,000 as taxable income.
• Add interest from all eligible savings accounts while checking the overall ₹10,000 limit.
• Do not classify fixed-deposit or recurring-deposit interest as savings account interest.
• Confirm that the correct tax regime has been selected.
• Senior citizens should check eligibility under Section 80TTB instead of Section 80TTA.
• Review the detailed tax computation before proceeding with submission.

Conclusion

Once eligible savings bank interest is correctly entered, myITreturn automatically considers the applicable Section 80TTA deduction in the detailed computation. Review the computation to confirm that the interest income and deduction have been reported correctly before submitting your Income-tax Return.

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