Section 80TTB of the Income Tax Act, 1961 is a provision that provides tax benefits to senior citizens on interest income earned from specified deposits.
It allows senior citizens to claim deductions on interest earned from deposits with banks, co-operative societies, or post offices. Here are some key points about Section 80TTB:
- Eligibility: Section 80TTB is applicable to resident senior citizens who are 60 years of age or older during the relevant financial year.
- Eligible Interest Income: The provision covers interest income earned by senior citizens from deposits with banks, co-operative societies, or post offices. This includes interest earned from fixed deposits, savings accounts, and recurring deposits.
- Deduction Limit: Senior citizens can claim a deduction of up to Rs. 50,000 on the interest income earned from the specified deposits. This deduction is available on the total interest income, and any amount exceeding Rs. 50,000 will be taxable.
- Applicability: Section 80TTB is applicable only to senior citizens and not to other categories of individuals or entities.
- Filing of Income Tax Return: Senior citizens can claim the deduction under Section 80TTB while filing their income tax return.
It’s important to note that the deduction under Section 80TTB is specifically for senior citizens and interest income from specified deposits. Other interest income, such as from savings accounts or fixed deposits of individuals who are not senior citizens, would fall under section 80TTA.
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Madam, whether 80TTB deduction upto Rs. 50000 allowed to me(Sr citizen) under new tax regime as ICICI Prulife paid interest payout of Rs. 124560/- (Sec 194DA) and TDS of Rs. 6230(5%) deducted on withdrawal of policy amount before maturity. Can I get exemption under new tax regime under 80TTB