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| Miscellaneous Savings & Income Deductions — Sections 80TTA, 80TTB, 80RRB & 80U |
📖 Introduction
After maximizing big deductions under Sections 80C–80EEB, savvy taxpayers can still save more through four “miscellaneous” provisions in Chapter VI‑A. Sections 80TTA and 80TTB reward you for keeping money in deposit accounts; Section 80RRB helps inventors; and Section 80U offers a flat deduction for disability. Let’s explore each so you don’t leave any rupee on the table.
💰 1. Section 80TTA: Savings‑Account Interest (Non‑Seniors)
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| Savings-Interest Deduction |
✅ Who Can Claim
- Resident individuals and HUFs (not senior citizens).
💸 What Qualifies
- Interest from savings accounts in:
- Banks (public/private)
- Cooperative societies
- Post offices
🔢 Deduction Limit
- Up to ₹10,000 per year.
Example:
If your savings account interest is ₹12,500, you can deduct ₹10,000 under Section 80TTA; the remaining ₹2,500 is taxable.
👵 2. Section 80TTB: Deposit Interest for Senior Citizens
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| Senior Deposit Deduction |
✅ Who Can Claim
- Resident senior citizens (age ≥ 60 years).
💸 What Qualifies
- Interest on:
- Savings accounts
- Fixed deposits (bank or post office)
- Recurring deposits
🔢 Deduction Limit
- Up to ₹50,000 per year (combined across all deposit sources).
Tip:
If you’re a senior citizen, use Section 80TTB instead of 80TTA, since its ₹50,000 cap is much higher.
🏆 3. Section 80RRB: Patent Royalty Income
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| Patent Royalty Deduction |
- Resident individuals earning income by way of royalties for patents registered in India.
💸 What Qualifies
- Royalty payments received from:
- Sale or lease of patented technology
- Lump‑sum patent transfers
🔢 Deduction Limit
- Lesser of:
- Actual royalty received
- ₹3,00,000
- Total “patent income” (before deduction)
Example:
Dr. Gupta receives ₹4 lakhs royalty on her patent. She can claim up to ₹3 lakhs under Section 80RRB.
♿ 4. Section 80U: Disability Deduction
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| Disability Deduction |
✅ Who Can Claim
- Resident individuals certified to have a mental or physical disability.
🔢 Deduction Limit
- ₹75,000 for ≥ 40% disability
- ₹1,25,000 for ≥ 80% (severe) disability
📝 Documentation
- Disability certificate in Form 10‑IA issued by a prescribed medical authority.
Case Study:
Ms. Mehta has 65% disability and incurred no actual extra expenses. She still claims the flat ₹75,000 deduction under Section 80U by submitting her certificate.
📊 Summary Table
| Section | Who | What | Max Deduction | Key Condition |
|---|---|---|---|---|
| 80TTA | Resident Non‑seniors/HUF | Savings‑account interest | ₹10,000 | Interest only from permitted accounts |
| 80TTB | Resident Seniors | Deposit (savings & FDs) | ₹50,000 | Must be age ≥ 60 |
| 80RRB | Resident Individuals | Patent royalty income | Up to ₹3,00,000 | Patent registered in India; resident taxpayer |
| 80U | Resident Individuals | Disability (self) deduction | ₹75,000/₹1,25,000 | Disability ≥ 40%/≥ 80%; certificate mandatory |
✅ How to Claim
- Collect proofs: bank statements, interest certificates, royalty statements, disability certificate.
- Enter in ITR: under “Deductions under Chapter VI‑A.”
- Keep records: hold these documents for 6 years in case of scrutiny.
📥 Downloadable Checklist
- Download Link: “Miscellaneous Deductions Checklist (PDF)” to ensure you don’t miss any of these benefits!
Next Article: We’ll wrap up our Chapter VI‑A series with “Year‑End Planning & Filing Best Practices”, covering due dates, form selection, and audit readiness.
Happy saving, and stay tax‑smart!