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.
|Particulars||Section 80TTA||Section 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 Deduction||Upto Rs.10,000||Upto Rs.50,000|
For more information, visit the website of All India ITR