Section 80TTB -Interest Deduction for Senior Citizens [Updated]

Section 80TTB – Deduction for Senior Citizens 

1. Under Section 80TTB deduction, senior citizens can claim income tax exemption of up to Rs. 50,000/- on interest income earned.
2. Section 80TTB Deduction of the Income Tax Act, 1961 is available only to the senior citizens who are a resident of India.
3. Deduction of maximum INR 50,000/- is available on income earned from interest on bank saving deposits, fixed / recurring deposits, interest earned on deposit with co-operative society involved in banking and deposits in the post office.

Difference between 80TTA and 80TTB

Section 80TTA

Maximum deduction of up to Rs.10000/- for saving account interest

Section 80TTB
Maximum deduction of up to Rs.50,000/- for fixed deposits and saving interest

Note-In the case of senior citizens, the threshold limit of Tax Deduction at Source (TDS) on interest income has been raised from INR 10,000 to INR 50,000.