A resident senior citizen aged 60 years and above at any time during a Financial Year ,can claim a specified amount as a deduction from his gross total income for that FY. This section is applicable with effect from April 2018.
Quantum of deductions available
An amount of Rs 50,000/-
Interest from *Specified Incomes
Whichever is Lower
*specified Income is a aggregate of
- 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; or
- Interest on post office deposits.
There are some exceptions
If the specified deposits are held by or on behalf of a partnership firm, an association of persons (AOP) or a body of individuals (BOI), Section 80TTB deduction is not available for the partner of such a firm or for any member of such an AOP or BOI, while computing their total income.
Section 80TTA vs 80TTB
Section 80TTA provides similar nature of deduction as compare to Section 80TTB. However, it provides deductions of interest only on savings accounts from the gross total income of the individual taxpayer or a Hindu undivided family upto Rs 10,000.
As section 80TTB is exclusively designed for senior citizens, deductions under Section 80TTA is not available to senior citizens.
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