80ttb: Note

Note: In the above example the interest earned is Rs. 98,000 but deduction is allowed up to Rs. 50,000 under section 80TTB . Key Difference between section 80TTA and 80TTB A Senior Citizen can save how much amount of Income Tax after introducing section 80TTB ? Example Mr. Samir age of 65 years, having their interest income as below:- Savings interest of Rs 15,000 Interest on fixed deposits of Rs 80,000 Other income of Rs 2,50,000 Answer Let’s take the above income will be same in F.Y. 2017 ... deduction allowed u/s 80TTB with a limit of Rs. 50,000/- only for old regime for new regime – if his income is below the basic exemption limit, or qualifies for Section 87A relief, tax impact can be reduced Key takeaways Under the old regime, senior citizens enjoy better tax benefits on FD interest due to Section 80TTB Yes, FD interest is fully taxable. However, senior citizens can claim a deduction of up to Rs 50,000 on interest income under Section 80TTB (only in the old regime). Will a senior citizen with Rs 20 lakh income have to pay tax? Yes. Whether under the old or new tax regime, Rs 20 lakh income (from pension + FD) exceeds the exemption limits. Instead, they can avail a higher tax benefit under Section 80TTB for interest income from deposits. This clarifies that while general taxpayers and HUFs can use 80TTA for savings account interest (up to ₹10,000), senior citizens must use 80TTB (which offers a ₹50,000 deduction on interest from all types of deposits).