Deductions Under Section 80TTB For Senior Citizens

Deductions Under Section 80TTB For Senior Citizens

Section 80TTB is a provision whereby a citizen who is an inhabitant senior resident, aged 60 years or more whenever during a Financial Year (FY), can claim a specified amount as a deduction from his gross all out pay for that FY. This segment is relevant w.e.f 1 April 2018.

Quantum of Deductions Available in Section 80TTB

A deduction of lower than Rs 50,000 or a sum from a predetermined pay is permitted from the gross total income. Specified income is any of the following income in aggregate:

  • Interest on bank deposits (savings or fixed).
  • Interest on deposits held in a co-operative society engaged in the business of banking, including a co-operative land mortgage bank or a co-operative land development bank.
  • Interest on post office deposits.

In the event that the specified deposits are held by or on the behalf of a partnership firm, an association of people (AOP) or a body of individuals (BOI), Section 80TTB allowance isn’t available for the partner of such a firm or for any individual from such an AOP or BOI, while processing their total income.

Section 80TTA vs 80TTB

Section 80TTA provides deductions like Section 80TTB. In any case, it gives deductions of interest only on savings account held in a bank, co-operative bank, or a post office, from the gross all out pay of the individual citizen or a Hindu unified family up to Rs 10,000. With the presentation of Section 80TTB solely for senior residents, deductions under Section 80TTA isn’t available to senior residents of the country.

ParticularsSection 80TTASection 80TTB
Applicable to individuals and HUF except for senior citizens

Applicable to senior citizens

Specified Income
Interest on savings account only

Interest on all kinds of deposits
Quantum of DeductionUpto Rs.10,000Upto Rs.50,000

For more information, visit the website of All India ITR


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