Income from Interest is deductible
upto Rs. 50000 for Senior Citizens
(Section 80TTB of Income Tax Act applicable w.e.f 01-04-2019)
Year 2019-20 (Financial Year 2018-19) Section 80TTB of the Income
Act provides for an overall deduction of Rs. 50000 for interest on
deposits in case of Senior Citizens.
Earlier to financial year 2019-20 a deduction upto Rs. 10000 on account
of Savings Bank Interest was eligible to all under section 80TTA.
Now from financial year 2019-20 senior citizens are being provided with
a higher deduction of upto Rs. 50000 on account of interest on deposits
(savings as well as fixed deposits) under section 80TTB.
from all Deposits is eligible for deduction:
Interest from any deposit with banks, co-operative
societies and/or Post Office being:
- Interest from Savings Account
- Interest from Fixed Deposits
- Interest from Recurring Deposits
are eligible for deduction within the limit of Rs. 50000/-.
applicable only to Senior Citizens
Only senior citizens ie. individual resident in India of the age of 60
years or more at any time during the relevant previous year; are
eligible for deduction under section 80TTB.
permissible deduction is Rs. 50000/-
Total actual interest income from deposits upto maximum of Rs. 50000 is
eleigible for deduction. If total interest income is less then Rs.
50000 then deduction will be reduced to that actual interest income.
Deduction under Section 80TTA
deduction of savings bank interest of upto Rs. 10000 will no
longer be applicable to senior citizens.
not allowed u/s 80TTB
- Only interest from deposits with Banks, Co-operative
Societies & Post Office are eligible for deduction. So interest
from company deposits will not be eligible for deduction.
- Deduction allowed only to Resident senior Citizens.
NRI senior Citizens can't opt for Section 80TTB however they can opt
for Section 80TTA for deduction upto Rs. 10000.
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