Section 80TTB - Deduction for Senior Citizens

Senior Citizens get income tax benefit on interest earned from savings account, fixed deposits, recurring deposits and other deposits in banks and post offices under Section 80TTB with maximum limit of Rs. 50,000 in a financial year. This helps the Senior Citizens of India to have financial cushion and not to pay tax on interest earned to some extent from these deposits that might be the only source of income for them.

Let us understand Section 80TTB in detail below.

Table of Contents

What is Section 80TTB Deduction?
Section 80TTB Deduction Limits
Section 80TTA vs Section 80TTB
- Difference between Section 80TTA and 80TTB
Income Tax Saving by Senior Citizens using Section 80TTB
How to Claim Section 80TTB Deduction?
Conclusion
Frequently Asked Questions

What is Section 80TTB Deduction?

Section 80TTB of Income Tax Act, was introduced to provide tax benefits for senior citizens on their interest incomes from deposits
This deduction include deposits such as Savings Account Interest, Fixed Deposits, Recurring Deposits and other such deposits in Banks and Post offices
Maximum of Rs. 50,000 can be claimed in this deduction if your age is 60 years or above any time during the financial year
This deduction helps senior citizens with some financial cushion during their old age when they might have deposits as the only source of income
While 80TTB is applicable for senior citizens (60 years and above) and Super senior citizens as well, but if you are a non senior citizen of age less than 60 years than you can claim on savings account interest amount under Section 80TTA
While in 80TTA, only savings account interest can be claimed, 80TTB for senior citizens allow fixed deposits and recurring deposits interest to be claimed as well
It is important to note that 80TTB can be claimed only with Old Tax Regime

ALSO READ: Rs. 10,000 Fixed Deposit Interest Calculation

Section 80TTB Deduction Limits

Senior citizens can claim maximum of Rs. 50,000 under Section 80TTB if their age is 60 years or above.

Below are the steps to calculate and claim deduction with 80TTB

Calculate Interest amount from your Savings Accounts from Banks and Post Offices
Add the interest amount earned from Fixed Deposits throughout the financial year
Also calculate the total interest earned from recurring deposits held by you in the FY
Add all numbers from 1-3 points above. Either this total amount or Rs. 50,000, whichever is lower, can be claimed while filing ITR (Income Tax return)

While filing ITR, the total interest income amount will have to be added in “Income from Other Sources” section and Rs. 50,000 or this total (whichever is lower) can be claimed under Section 80TTB. This will help you not to pay income tax on interest incomes earned for this financial year.

ALSO READ: More Income Tax Saving Options

Section 80TTA vs Section 80TTB

While Section 80TTB is for senior citizens of age 60 years or above, Section 80TTA is for the non senior citizens with Rs. 10,000 as limits and only savings account interest is considered for exemption.

Since non senior citizens might be still working and saving in various investment options, Section 80TTA still allows us to claim up to Rs. 10,000 as savings account interest amount in a financial year.

Below are the key differences between Section 80TTA and 80TTB:

Difference between Section 80TTA and 80TTB

Items	Section 80TTA	Section 80TTB
Who is Eligible?	Non Senior Citizens of age below 60 years	All Senior Citizens with age 60 years and above
Deduction Limits	Rs. 10,000 in Financial Year	Rs. 50,000 in Financial Year
Deposits considered	Only Savings Account Interest earned from Banks and Post Offices	Interest from Savings Account, Fixed Deposits, Recurring Deposits, etc. are considered
Tax Regime	Allowed only in Old Tax Regime	Allowed only in Old Tax Regime

Difference between Section 80TTA vs 80TTB Table

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Income Tax Saving by Senior Citizens using Section 80TTB

Let us understand the amount that can be claimed by senior citizens to save income tax with the help of example.

Let’s say below are the interest amounts earned in a financial year for a senior citizen:

Saving Account Interest: Rs. 5000
Fixed Deposits Interest: Rs. 70,000
Recurring Deposits Interest: Rs. 9000

So total interest amount earned will be Rs. 84,000. Out of this, maximum Rs. 50,000 can be claimed under Section 80TTB while filing Income Tax Return.

ALSO READ: 3 Post Office Schemes with High Returns

How to Claim Section 80TTB Deduction?

The only way to claim 80TTB deduction to save income tax is by filing ITR (Income Tax Return).

Additionally, you can fill Form 15H in your Bank where you have fixed deposits to avoid deduction of TDS (Tax deduction at source).

Conclusion

So if you are a senior citizen, you can reap benefits of Section 80TTB to claim maximum of Rs. 50,000 in a financial year on your deposits including savings account interest, fixed deposits, recurring deposits interest, etc.

While Section 80TTB is for senior citizens, 80TTA is for non senior citizens to claim only savings account interest amount in Fy with limit of Rs. 10,000.

Some more Reading:

Frequently Asked Questions

Can Super Senior Citizens claim Deduction with Section 80TTB?

Yes all senior citizens including super senior citizens with age 60 years and above can claim 80TTB deduction

Can I claim 80TTA and 80TTB both?

No, an individual can either be less than 60 years or more than 60 years on any given date, so you cannot claim both deductions. 80TTA is for people with age less than 60 years and 80TTB is for people with age 60 years and above, so you can claim any one deduction option here.

What is limit for 80TTB in income tax?

Rs. 50,000 is the maximum limit in 80TTB of income tax act

Can we claim FD interest in 80TTB?

Yes FD or Fixed Deposit interest amount earned in banks or post offices can be claimed in 80TTB for a financial year

Is Section 80TTB applicable for non senior citizens?

No, for non senior citizens, separate section 80TTA is applicable with Rs. 10,000 limit and only including savings account interest amount.

Documents required to claim Section 80TTB Deduction?

There is no specific document required to claim 80TTB. It can be done while filing ITR, so ensure that you PAN is linked to all your bank accounts and in post office deposits as well.

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Section 80TTB – Deduction for Senior Citizens