Tax deduction u/s 80TTA is calculated on interest income of all bank accounts
Senior citizens enjoy a higher tax deduction of up to ₹50,000 on interest earned on savings bank account under Section 80TTB.
Few more days left to file your income tax return. It is important to file your ITR correctly and do not miss any transaction. One most common mistake is not reporting the interest earned on bank savings account. Interest on savings bank account over the deduction limit is taxed as 'Income from other source' as per the tax slab rate applicable to the tax payer. But if you miss reporting it in your ITR filing, you must be prepared to receive an income tax notice for that matter. And the penalties are heavier than the tax you would pay on the interest on savings account.