Produced by: BT Desk Designed by: Muskan Arora
Section 80TTB of the Income Tax Act gives tax benefits for individuals 60 or older, by offering a deduction of Rs 50,000 on interest income generated from various deposits.
It is applicable to interest earned from savings deposits, fixed deposits, recurring deposits, and even deposits under the Senior Citizen Saving Scheme.
Deductions apply to interest on bank deposits (savings or fixed), cooperative society deposits, and post office deposits.
Banks cannot deduct TDS from interest payments up to Rs 50,000 for senior citizens under Section 80TTB.
The TDS limit for interest under Section 194A is extended to Rs 50,000, given the exemption under Section 80TTB.
Interest exceeding Rs 50,000 attracts tax as per the applicable slab rate for senior citizens. Interest income from company fixed deposits or bonds/NCDs does not qualify for relief under Section 80TTB.
Section 80TTA is for individuals below 60 years and Hindu Undivided Families (HUFs), offering deductions up to Rs 10,000 solely on savings accounts. It does not extend its benefits to senior citizens.