Skip to content

CA Intermediate · Taxation · Deductions from Gross Total Income

Kavita Rao, a resident individual under the old regime for tax year 2026-27, has gross total income of Rs 6,00,000, which includes Rs 40,000 of savings bank interest from banks and Rs 25,000 of interest on a post office savings account. She is below 60 years. Considering the deduction for interest on deposits in savings accounts (80TTA equivalent), what deduction is allowed?

The deduction is Rs 10,000. For a non-senior-citizen individual, interest on savings accounts with banks and the post office qualifies, but the deduction is capped at Rs 10,000. The higher Rs 50,000 limit is only for resident senior citizens.

  1. ARs 10,000Correct
  2. BRs 40,000
  3. CRs 65,000
  4. DRs 50,000

Explanation

For persons other than senior citizens the deduction on savings account interest (banks, co-operative banks, post office) is limited to Rs 10,000. Total eligible interest is Rs 65,000, so the deduction is the lower of Rs 65,000 and Rs 10,000. Rs 50,000 applies only to senior citizens under the 80TTB-type provision.

Did you get it right without looking?

One question tells you little. A timed set on Deductions from Gross Total Income shows your real accuracy, how long you take and where you lose marks.

Practise Deductions from Gross Total IncomeFree diagnostic mock

More Deductions from Gross Total Income questions