Sec 80TTB – Interest Income of Senior Citizens is now tax-relaxed upto Rs 50,000/-

Applicable to

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/-

Or

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.

Visit www.papertax.in and speak to your dedicated tax adviser for any further queries with regards to Income tax & G.S.T. matters, or download paper tax mobile application from Google play store to stay updated for any legal updates. You can also contact us on our help desk 844844 8821.

 

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