80TTB Explained: Your Key to Saving Taxes on Bank Interest Income as a Senior Citizen
Meaning
80TTB is a deduction allowed to the senior citizens on interest on deposits under chapter VIA of the Income Tax Act,1961.
Applicability of Section 80TTB:
This deduction is allowed on the Gross Total Income(GTI) of the assessee, who is a senior citizen, on any income by way of interest on deposits with-
- banking company to which Banking Regulations Act,1949 applies
- a cooperative society engaged in carrying on business of banking or
- a post office as defined in clause (k) of section 2 of the Indian Post Office Act, 1898
Deductions allowed
Deductions allowed will be lower of
actual interest received or
Rs. 50000
Difference between 80TTA and 80TTB
| Parameters | Section 80TTA | Section 80TTB |
| Introduced on | Came into effect in AY 2013-14 | Came into effect in AY 2019-20 |
| Beneficiary | Individuals and HUF | Only Senior Citizens |
| Qualified Sources | Interest on Savings Account | Interest on deposits in Savings, Fixed and Recurring Accounts |
| Amount Limit | Rs. 10000 | Rs. 50000 |
| Eligibility | Eligible to both NRI and NRO accounts | Doesnot apply to NRI account |
New Tax Regime
This deduction is not allowed under the New tax regime.
