Section 80TTB - Deduction of Interest on Deposits for Senior Citizens
Section 80TTB of the Indian Income Tax Act provides for the deduction of interest on deposits made by Senior Citizens
SECTION 80TTB OF INCOME TAX - DEDUCTION OF INTEREST ON DEPOSITS FOR SENIOR CITIZENS
Section 80TTB provides a maximum deduction of Rs.50000/- to Senior Citizens. We look at the provision in detail here.
Who is eligible for Section 80TTB deduction?
This section applies to Senior Citizens only. Senior Citizen has been defined under Income tax as an individual who is a resident of India and is 60 years or more during the relevant year.
Which Bank accounts are covered in this section?
The interest on deposits received from the following bank accounts is covered under this section -
(a) Any Banking Company to which the Banking Regulation Act,1949 applies,
(b) Any co-operative society engaged in the business of banking,
(c) Any Post Office
What is the amount of Deduction eligible u/s 80TTB?
The deduction available under this section is lower of -
(a) Actual Interest earned
(b) Rs. 50000/-
Thus the maximum amount of deduction available under this section is Rs.50000/-.
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