AIS Savings Interest Reporting: Why Even Small Amounts Show Up for AY 2026-27

TL;DR

• Every bank now reports savings account interest credited during the year against your PAN under AIS, regardless of amount.
• Savings interest is exempt up to Rs. 10,000 under Section 80TTA for non-seniors, and Rs. 50,000 under Section 80TTB for seniors.
• The Section 80TTA and 80TTB deductions are available only in the old regime, not in the new regime under Section 115BAC.
• Interest must be reported under Schedule OS as income from other sources, even if exempt under 80TTA, with the deduction claimed separately.
• The Rs. 10,000 threshold is for the deduction, not for reporting. So Rs. 800 of savings interest still appears in AIS and must be reported.

What this means in plain terms

For decades, most people ignored savings account interest at tax time. The amounts felt too small to matter. A typical savings account paying 3% on an average balance of Rs. 1 lakh gives Rs. 3,000 a year. Many taxpayers never bothered to add this in their ITR. Until AIS came in 2021, no one really noticed.

AIS changed the visibility. Every bank now reports interest credited to your savings account, recurring deposit, and term deposit, against your PAN. So you might have Rs. 850 of savings interest from your SBI account, Rs. 2,400 from HDFC, and Rs. 600 from a no-frills account you forgot you had. All three show up in AIS. The total may be Rs. 3,850, well below the Rs. 10,000 80TTA threshold. But if you do not report it, the CPC system flags a mismatch. This blog walks through the reporting rules and the regime-specific treatment.

How banks report savings interest

Quarterly reporting

Banks compile interest credited to each PAN-linked savings, RD, and TD account and report to the income tax department under SFT-005 for TD interest and through quarterly returns for savings interest.

No TDS threshold for savings

Unlike fixed deposit interest, where TDS applies above Rs. 40,000 (Rs. 50,000 for seniors) under Section 194A, savings interest has no TDS at all. So your bank does not deduct anything, but the income still appears in AIS.

Sub-account aggregation

If you have multiple savings accounts in the same bank, the bank typically aggregates interest at PAN level. Some smaller banks report at account level, leading to multiple entries.

Joint accounts

For joint savings, the bank reports against the primary holder's PAN. The secondary holder does not see the interest in their AIS, even if they were entitled to a share.

Section 80TTA and 80TTB

Section 80TTA for under-60

Section 80TTA gives a deduction of up to Rs. 10,000 per year on interest from savings accounts in banks, cooperative societies, and post offices. It does not cover FD interest, RD interest, or interest on time deposits.

Section 80TTB for seniors

For taxpayers aged 60 and above, Section 80TTB gives a deduction of up to Rs. 50,000 per year. It covers all bank interest, including FDs, RDs, and savings.

Mutual exclusivity

A taxpayer cannot claim both 80TTA and 80TTB. Once you turn 60, 80TTB applies and 80TTA stops.

Old regime only

The Finance Act 2020 introduced the new tax regime under Section 115BAC, which disallows most deductions including 80TTA and 80TTB. For AY 2026-27, if you opt for the new regime, you pay full tax on all savings interest above zero.

Reporting in ITR

Schedule OS

Savings interest goes in Schedule OS, Income from Other Sources, in the "Interest from savings bank account" row. Add up all your savings accounts and put the total here.

Schedule VI-A deduction

If you are in the old regime, claim the 80TTA or 80TTB deduction in Schedule VI-A. Enter the amount up to Rs. 10,000 (or Rs. 50,000 for 80TTB).

Matching to AIS

The total in your Schedule OS savings interest row should match the AIS total in the savings account interest category, after accounting for any feedback corrections.

A real example

Divya, 28, Rs. 14L CTC, Hyderabad, is filing ITR-1 for AY 2026-27 under the old regime.

1. Her AIS shows savings account interest of Rs. 4,200 from SBI, Rs. 2,800 from HDFC, and Rs. 1,100 from her old Canara Bank account. Total Rs. 8,100.
2. She also has FD interest of Rs. 36,000 from HDFC, no TDS deducted as below Rs. 40,000 threshold.
3. In her ITR, she enters Rs. 8,100 in Schedule OS under "Interest from savings bank account" and Rs. 36,000 under "Interest from deposits with banks."
4. In Schedule VI-A, she claims 80TTA deduction of Rs. 8,100 (full savings interest since below Rs. 10,000 cap).
5. The FD interest of Rs. 36,000 is fully taxable in old regime, with no 80TTA cover since 80TTA is only for savings interest, not FD.
6. Her gross taxable income from other sources is Rs. 44,100 - Rs. 8,100 = Rs. 36,000. She files in July 2026 and CPC processes in three weeks.

What to do this week

1. Pull AIS from incometax.gov.in and note total savings account interest under "Interest from savings bank account."
2. Cross-check against your bank passbooks or downloaded interest certificates.
3. Choose between old and new regime. In old regime, claim 80TTA up to Rs. 10,000. In new regime, no deduction.
4. Report total savings interest in Schedule OS regardless of regime.
5. Run the 6-step assessment at https://myfinancial.in to see your old-vs-new regime delta, unused deductions, and insurance gap in under 10 minutes.

FAQ

What if my total savings interest is below Rs. 100?

You still report it. There is no de minimis threshold for AIS or ITR reporting. The 80TTA deduction can still be claimed for the actual amount.

Does cooperative bank savings interest count?

Yes. Interest from cooperative society banks is also covered under 80TTA and must be reported in Schedule OS.

Is post office savings interest covered under 80TTA?

Yes. The savings bank interest from post office accounts qualifies for 80TTA deduction.

What about post office FDs and NSC?

Post office TD interest is covered by 80TTB if you are a senior. NSC accrued interest is reinvested and qualifies for 80C reinvestment in years one to four. The final year's accrued interest is taxable.

Can I claim 80TTA on interest from a child's account?

The interest belongs to the child for tax purposes if the child is a minor, with clubbing under Section 64(1A). The Rs. 1,500 exemption applies. 80TTA is on your own savings interest.

What if AIS shows higher savings interest than my passbook?

Use AIS feedback to flag the entry as "information is not fully correct" with the correct amount. The bank will be asked to refile.

Does the new regime have any deduction on savings interest?

No. Section 115BAC disallows 80TTA and 80TTB entirely. All savings interest is taxed at slab rate.

Sources

• Section 80TTA and 80TTB of the Income Tax Act: https://incometaxindia.gov.in/
• Section 115BAC on the new tax regime: https://incometaxindia.gov.in/
• AIS user guide on savings interest: https://www.incometax.gov.in/iec/foportal/help/annual-information-statement
• E-filing portal: https://www.incometax.gov.in/iec/foportal/
• Finance Act 2025 amendments to Section 115BAC: https://incometaxindia.gov.in/

This is general information, not personalised advice. For your situation, consult a Certified Financial Planner.