Section 80TTB of the Income Tax Act, 1961 provides for a deduction of upto Rs 50,000 from interest income in the case of resident individuals of 60 years or more (senior citizens), from the Assessment Year 2019-20.
Section 80TTB has been inserted by the Finance Act, 2018 to provide for a higher deduction of upto Rs 50,000 in respect of interest income of Senior Citizens.
However, such Senior Citizen assessees are not eligible for further claiming deduction under Section 80TTA, which is meant for individuals (other than senior citizens) and HUFs, in respect of interest income from savings deposits.
Deduction Limit
Section 80TTB deduction can be availed in respect of eligible interest income subject to a maximum of Rs 50,000 during the relevant previous year.
Further, this deduction is available in addition to exemption u/s 10(15)(i) of Rs 3,500 for individual account holders and Rs 7,000 in the case of joint account holders, in respect of interest from savings deposits with post offices, as per CBDT Notification 32/2011.
Eligible Incomes
Section 80TTB deduction is available in respect of interest income from savings/fixed deposits maintained with any Bank, Banking Company or Cooperative Banks and/or from term deposits with Post Offices.
Eligible Persons
Section 80TTB deduction is available to resident senior citizen individuals (i.e. of age 60 years or more during the relevant previous year). All other persons, like HUF, Firms, Companies, etc. are not allowed/ eligible to claim this deduction.
No Deduction in New Regime
Deduction under section 80TTB is not available to assessees those who fall under the new tax regime (section 115BAC).
Related Posts:
Completion of Age of 60/ 80 for Senior/ Very Senior Citizen Status Benefit under Income Tax
Text of Section 80TTB: Deduction for Interest on Deposits (Senior Citizens)