newsJuly 2025Low impact
Proposed: 80TTA Limit Extension to All Savers
A proposed amendment seeks to extend the ₹10,000 deduction on savings account interest to all individuals, not just non‑seniors.
Affected taxpayers
Senior citizensSavers
Currently, Section 80TTA benefits only non‑senior citizens, while senior citizens get the higher 80TTB deduction of ₹50,000 on deposits.
A discussion paper suggests merging the two with a common ₹25,000 deduction for all taxpayers and a separate ₹50,000 for senior citizens over 75.
If enacted, this change would simplify the deduction structure and benefit a large number of middle‑income savers.