The Income Tax Act contains 23 chapters in total, and 298 sections, as per the official website of the income tax department. While it is extremely tedious to go through all the income tax sections and chapters, the income tax department encourages taxpayers to make use of the deductions and rebates under the Income Tax Act, to reduce the amount that is liable to be taxed.
There are five sections in particular, however, that every taxpayer should know, which will be particularly helpful when you decide to invest your corpus in any of the investment instruments.
1. Section 80C – Tax deduction on investments
2. Section 80CCC – Tax deduction for contribution to pension funds
3. Section 80CCD – Tax deduction for contribution to national pension scheme
4. Section 80TTA – Tax deduction for interest on savings account
5. Section 80TTB – Tax deduction on interest income for senior citizens
Full Details Explain
- Section 80C – Tax deduction on investments
Section 80C of the Income Tax Act of India is a clause that points to various expenditures and investments that are exempted from Income Tax. It allows for a maximum deduction of up to Rs 1.5 lakh every year from an investor’s total taxable income.
Tax exemptions for investment under 80C are applicable only for individual taxpayers and Hindu Undivided Families. Corporate bodies, partnership firms, and other businesses are not qualified to avail of tax exemptions under Section 80C.
What is 80C in Income Tax and its Sub-sections
Section 80C permits certain investments and expenses to be tax-exempted.
By well-planning the investments that are spread diversely across various options like NSC, ULIP, PPF, etc., an individual can claim deductions up to Rs 1,50,000. By taking tax benefits under 80c, one can avail of a reduction in tax burden.
Under the Income Tax Act of India, deductions under Section 80C of Income Tax Act are divided into certain sub-sections. These are –
| Tax Saving Sections | Eligible Investments for Tax Exemptions |
| Section 80C | Investments in Provident Funds such as EPF, PPF, etc., payments made towards life insurance premiums, Equity Linked Saving Schemes, payments made towards the principal sum of a home loan, SSY, NSC, SCSS, etc. |
| Section 80CCC | Payment made towards pension plans, as well as mutual funds. |
| Section 80CCD(1) | Payments made towards certain Government-backed schemes such as National Pension System, Atal Pension Yojana, etc. |
| Section 80CCD(1B) | Investments of up to Rs.50,000 in NPS are considered for exemption under this section. |
| Section 80CCD(2) | Employer’s contribution towards NPS (up to 10%, comprising basic salary and dearness allowance, if any) is exempted under this category. |
Eligibility of Sec 80C of Income Tax Act
Individuals and HUFs are both eligible for Section 80C deductions. This section also applies to both Indian residents and non-resident Indians.
Companies, partnerships, and other corporate bodies are not eligible for the deduction.
- Investments Eligible for Deduction Under Section 80C of the Income Tax Act
Here are some of the 80C tax saving options an individual can opt for-
| Investment options | Interest | Minimum lock-in period | Assured Return | Associated Risk |
| ELSS | 12% to 15% (depending on market fluctuation) | 3 years | No | High |
| NPS | 8% to 10% | Till the investor reaches 60 years of age (retirement) | No | High |
| SCSS | 8.20% | 5 years | Yes | low |
| PPF | 7.10% | 15 years | Yes | Low |
| NSC | 7.7% | 5 years | Yes | Low |
| ULIP | 8% to 10% (depending on market fluctuation) | 5 years | No | Moderate |
| Fixed Deposit | Up to 8.40% | 5 years | Yes | Low |
| Sukanya Samriddhi Yojana | 8.00% | 8 years | Yes | Low |
- Life Insurance Premiums
Premiums paid towards life insurance policies are eligible to receive tax benefits as per 80C limit. These exemptions are available against policies held by self, spouse, dependent children, etc. Hindu Undivided Family members can also benefit from the same exemptions.
Currently, an annual premium of up to 10% (of the insurance policy’s total sum assured) is tax exempted under this scheme. This clause was revised on 1st April 2012, prior to which premiums of up to 20% (of the sum assured) were liable for tax exemption under Section 80C deduction.
- Public Provident Fund
Any contribution towards the Public Provident Fund (PPF) can be filed for tax deduction under Section 80C. Public Provident Funds come with a maximum deposit limit of Rs.1,50,000, allowing an investor to claim the entire deposited amount as an exemption under this Income Tax Act.
Any voluntary contribution made by the employee towards the provided fund is also eligible for tax deduction under Section 80C of the Income Tax Act.
- NABARD Rural Bonds
NABARD stands for National Bank for Agriculture and Rural Development. Rural Bonds offered by NABARD are eligible for tax exemption under the Income Tax Act of India. The maximum deductible amount is capped at Rs.1.5 lakh under Section 80C.
- Unit Linked Insurance Plans (ULIPs)
Unit Linked Insurance Plans offer more returns in the long term when compared to conventional insurance policies. They have become especially popular in recent years thanks to the tax benefits offered under Section 80C of the Income Tax Act 1961. Investors can avail of tax exemptions up to Rs. 1.5 lakh on the invested amount u/s 80C income tax provisions.
- National Savings Certificate
NSC, or National Savings Certificate, is one of the most popular tax-saving instruments for risk-avert individuals. Interest earned on NSC is compounded semi-annually, and the maximum maturity period ranges from 5 to 10 years.
Investors do not have to follow any limitation on the total sum invested towards NSC in a financial year; however, only a maximum of Rs.1.5 lakh will be subject to exemption every financial year under Section 80C.
- Tax Saving FD
Tax Saving FDs are fixed deposit schemes offered by both banks and post offices that allow tax deduction under Section 80C. These FDs have a lock-in period of 5 years and offer a maximum of Rs 1.5 lakh tax exemption (on the principal amount). However, the returns of such instruments are liable for taxation.
- EPF
The return earned from Employee Provident Fund (EPF), including the interest, is eligible for tax exemption under Section 80C of the Income Tax Act, 1961.
It is only eligible for employees who have continued his or her service for at least 5 years. If individuals make voluntary contributions to their EPF accounts, such an amount is eligible for tax exemptions under Section 80C.
- Infrastructure Bonds
Section 80C of the Income Tax Act allows tax exemptions on infrastructure bonds, provided the investment is equal to or higher than Rs.20,000.
The 80c deduction limit of Rs.1.5 lakh stays applicable for these long-term secured bonds as well.
- Equity-Linked Saving Scheme
Equity Linked Saving Schemes, or ELSS, fall under Section 80C’s exemption category for up to its maximum limit (Rs.1.5 lakh). These investment schemes come with a mandatory 3-year lock-in period.
- Senior Citizens Savings Scheme
Any investments made towards Senior Citizens Saving Scheme (or SCSS) is eligible for tax exemption up to the maximum allocated 80C limit, i.e. Rs. 1.5 lakh.
Individuals above the age of 60 (people opting for voluntary retirement scheme are eligible to participate in SCSS after the age of 55 years) years are eligible to get benefits from SCSS, which has a minimum lock-in tenure of 5 years.
- Principal Repayment Made Towards Home Loan
Only the repayments made towards the principal component of home loan EMIs are eligible for deduction under 80C. However, the borrower has to fulfil certain clauses to avail of this benefit; these are –
- Exemptions can only be claimed if the construction of the property is completed.
- Transference of the property within 5 years of possession will exclude it from the tax exemptions provided under Section 80C of the Income Tax Act, 1961.
- Any amount claimed as a tax deduction should be taxable in the transfer year if a handover is made after 5 years of the property’s possession. Failing to meet this clause will also render it excluded from Section 80 C’s guidelines.
- Stamp Duty and Registration Charges
Stamp duty and registration charges can be considered the two largest expenses made towards taking ownership of a property. The Government of India allows a deduction of tax liability till the 80C exemption limit on the stamp duty and registration charges paid towards house procurement.
However, exemptions can only be claimed in the year that these duties are paid; otherwise, it will not be eligible for consideration under Section 80C deduction.
- Sukanya Samriddhi Yojana
Sukanya Samriddhi Yojana is a savings scheme specially designed to meet the financial requirements for a girl’s education and marriage. Parents or legal guardians of a girl child (not older than 10 years of age) can open this account, and parents of 2 or more (only in the case of twins) girls can also invest in this plan.
The interest earned from this investment scheme is eligible for tax exemption under Section 80C.
Latest News on Section 80C
Under the Union Budget 2023, the Finance Minister did not make any changes with respect to the exemption limit for Section 80C.
Therefore, if an individual is following the Old Tax Regime, they can gain the benefit of receiving tax exemptions up to Rs 1,50,000. Note the rules are not applicable to those who have enrolled for the new tax regime.
- Section 80CCC – Tax deduction for contribution to pension funds
Section 80CCC of the Income Tax Act of 1961 allows for annual deductions of up to Rs.1.5 lakh for contributions made by an individual to designated pension plans provided by life insurance. The deduction is limited by Section 80C.
What is Section 80CCC?
The Section 80CCC exemption limit includes the money spent on the purchase of a new policy or payments made towards the renewal or continuation of an existing policy.
The primary condition for availing this exemption is that the policy for which the money has been spent must be providing a pension or a periodical annuity.
Section 80CCC is read along with Section 80C and Section 80CCD(1), thereby limiting the total exemption limit to Rs. 1,50,000 per annum.
Terms and Conditions of Section 80CCC
Following are the terms and conditions applicable under the Act: –
- Available to those individuals who have paid the sum for renewal or purchase of a life insurance policy from their taxable income.
- The payment of funds from the policy should be made as per the terms of Section 10 (23AAB) from the accumulated funds.
- If any bonuses are received or interest is accrued, it is not eligible for deduction under Section 80CCC.
- Any amount received from the policy as a monthly pension is liable for taxation as per the prevailing rates.
- If the policy is surrendered, the amount would also be subject to taxation.
- Any rebates that were available on investment in annuity plans before April 2006 are not allowed under Section 88.
- Any amount deposited before April 2006 is not eligible for deduction.
What is Section 10 (23AAB)
The provisions of Section 10 (23AAB) are inherently linked with Section 80CCC. It relates to the income earned from a fund that has been set up by a recognised insurer, including the LIC.
The fund must have been set up before August 1996 as a pension scheme. The contributions made by the taxpayer to the policy must have been with the intention of earning pension income in the future.
Eligibility for Deduction Under Section 80CCC
The conditions regarding eligibility for deductions are:
- An individual taxpayer who has subscribed to an annuity plan which has been offered by an approved insurance company.
- HUF or Hindu Undivided Family is not eligible for exemption under Section 80CCC.
- These provisions apply to both residents as well as non-residents.
Important Points Related to Section 80CCC
Here are some essential points that you must know regarding the applicability of the 80CCC Section:
- The deduction limits available under Section 80CCC are clubbed together with Section 80C and Section 80CCD (1) to determine the total deduction limit available.
- The provisions of Section 80CCC are specifically applicable to those insurance providers in India that offer annuity or pension plans. The insurer could be a public entity or a private entity as well.
- The deductions are applicable for the premium/sum paid for the preceding Assessment Year only. For instance, if an individual pays the sum for 2-3 years together, then a deduction can only be claimed for the amount that pertains to the preceding year only.
- The maximum available deduction under this Section is Rs.1,50,000 per annum.
With the provisions of Section 80CCC, you can save a significant sum of money towards your taxation liability.
To be eligible to avail this exemption, you must keep a record of the transaction for the payment of money towards the insurance policy.
Under no circumstances can the exemption limit exceed the income of the individual. Along with Section 80CCC, there are several other provisions also under the Income Tax Act to help you save your taxation liability.
- Section 80CCD – Tax deduction for contribution to national pension scheme
Section 80CCD relates to the tax deduction for the contributions made in the National Pension System (NPS) and the Atal Pension Yojana (APY). Under this section, you can claim a deduction of up to ₹2 lakh in a financial year (apart from the employer’s contribution, as detailed below).
Section 80CCD is further divided into two subsections: Section 80CCD(1) and Section 80CCD(2). Section 80CCD (1) has a subsection called 80CCD(1B)
| Sections | Description | Deduction Limit |
| 80CCD(1) | Employee contributions to NPS/Atal Pension Yojana up to 10% of salary + dearness allowance | Up to ₹1,50,000 |
| 80CCD(2) | Employer contributions to NPS/Atal Pension Yojana | Up to 10% of basic + dearness allowance |
| 80CCD(1B) | Self contributions to NPS and Atal Pension Yojana above the Section 80CCD(1) limit | Up to ₹ 50,000 |
2.Categorisation of Section 80CCD in Detail
As already outlined above, deductions under Section 80CCD of the Income Tax Act are divided into two: Section 80CCD(1) and Section 80CCD(2). Section 80CCD(1) has a subsection called Section 80CCD(1B). Let’s understand each of them in detail.
Section 80CCD (1)
Section 80CCD(1) of the Income Tax Act relates to the deduction applicable to employed and self-employed individuals who contribute to the NPS and the Atal Pension Yojana. Under this section, any individual over 18 years who contributes to the NPS or the Atal Pension Yojana can claim a deduction of up to ₹1,50,000 per annum. However, this is subject to the following conditions: a government or a private-sector employee cannot claim more than 10% of salary as NPS or APY contributions. Here, salary means basic salary plus dearness allowance. For self-employed individuals, the limit is 20% of gross income.
Section 80CCD(1B)
In the Union Budget of 2015, the government introduced a new subsection to Section 80CCD(1) as an amendment – Section 80CCD(1B). This was done to boost the investment in the NPS and the Atal Pension Yojana schemes. As per Section 80CCD(1B), individuals who are employees or self-employed can claim an additional deduction of ₹50,000 when they contribute to the NPS or the Atal Pension Yojana.
This deduction is over and above the amount that can be claimed under Section 80CCD(1). However, when claiming this, make sure there is no duplication of claim, i.e., you do not claim the same contribution amounts under both sections.
Section 80CCD(2)
Salaried individuals may enjoy the additional benefit of their employer contributing to their pension schemes, such as the NPS. Section 80CCD(2) of the Income Tax Act gives employed individuals the benefit of claiming income tax deductions for contributions made by their employer. It is subject to the following conditions:
- Private-sector employees can claim a deduction up to 10% of their salary (basic salary + dearness allowance) under Section 80CCD(2)
- Government employees can claim up to 14%
3.Tax Benefits under Section 80C – 80CCC, 80CCD(1), 80CCD(1B) and 80CCD(2)
| Sections | Description | Deduction Limit |
| 80C | Tax-saving instruments and investments | Up to ₹ 1,50,000* |
| 80CCC | Contributions to annuity and retirement plans | |
| 80CCD(1) | Employee contributions to NPS/Atal Pension Yojana up to 10% of salary + dearness allowance | |
| 80CCD(2) | Employer contributions to NPS/Atal Pension Yojana | Up to 10% of basic + dearness allowance |
| 80CCD(1B) | Self-contributions to NPS and Atal Pension Yojana above the Section 80CCD(1) limit | Up to ₹50,000* |
*The limit of ₹1,50,000 deduction is inclusive of Section 80C, 80CCC and 80CCD(1) deductions. This means that a maximum of ₹ 1,50,000 can be claimed under all three sections combined. Section 80CCD(1B) deduction of up to₹ 50,000 is over and above this limit. Therefore, under Sections 80C, 80CCC, 80CCD(1) and 80CCD(1B), a maximum deduction of ₹ 2,00,000 can be claimed.
4. National Pension System under 80CCD
Contributions to the National Pension System or NPS are eligible for tax deductions under Section 80CCD. NPS is a retirement instrument that was first brought into the market in 2004. Initially, it was meant for government employees, but in 2009, it was opened up for others.
Today, any public-sector, private-sector employee as well as self-employed individuals who are over 18 years of age can invest in NPS. NPS is a market-linked instrument managed by fund managers who invest money across four different asset classes. Investments in NPS are usually locked in until retirement or superannuation age of 60 years. Individuals can choose to invest further until 70 years of age.
Some important things to know about NPS are:
- NPS is a retirement benefit plan that is compulsory for central government employees, but optional for others.
- Many individuals choose to invest in NPS because of its tax benefit.
- NPS contributions are eligible for up to ₹ 2,00,000 tax deductions under Section 80CCD.
- NPS contributions can be made to two different accounts: Tier I and Tier II. When it comes to claiming NPS tax benefit, only contributions to Tier I accounts are eligible for NPS tax deductions for private sector employees. For government sector employees, both Tier I and Tier II contributions are eligible for NPS tax deductions.
- Upon maturity, up to 60% of the NPS corpus can be withdrawn, tax-free. The remaining 40% has to be used to purchase annuities. Even this amount is tax-free. Therefore, NPS tax benefit is exempt-exempt-exempt, meaning contributions, interest earned and maturity amounts are tax-free.
5. Atal Pension Yojana under 80CCD
Atal Pension Yojana (APY), also known as Pradhan Mantri Pension Yojana is another government-backed retirement scheme that provides investors with a minimum guaranteed pension on retirement.
This pension yojana is aimed primarily at people in the unorganized sector. Individuals between the age of 18 and 40 are eligible to apply for this pension scheme. Just like NPS, APY contributions are locked in until 60 years of age, with premature withdrawals permitted under special circumstances. Atal Pension Yojana benefits for tax are similar to that of NPS tax benefits:
- Under Section 80CCD(1), APY contributions of up to ₹ 1,50,000 are eligible for tax deductions.
- Self-employed individuals can claim deductions on APY investments of up to 20% of their annual income as long as it does not exceed ₹ 1,50,000.
- An additional investment of up to ₹ 50,000 in APY is also eligible for deduction under Section 80CCD (1B), just like for NPS.
- Depending upon the contributions made, subscribers can receive guaranteed pensions of ₹ 1,000, ₹ 2,000, ₹ 3,000, ₹ 4,000, or ₹ 5,000 per month after retirement. However, this pension income is taxable.
- In case of a subscriber’s death, their spouse will be entitled to receive the pension instead. If the subscriber dies prematurely, i.e. before they turn 60, the spouse can either exit the scheme by withdrawing the entire corpus or continue it in their name and receive the pension after retirement. Therefore, APY also provides the benefit of paying a lump sum to dependents in case of death.
6. Terms and Conditions For Deductions Under Section 80CCD
When claiming deductions under Section 80CCD, here are some things to keep in mind:
- Section 80CCD deductions are applicable to public-sector and private sector individuals as well as self-employed people.
- Section 80CCD deductions can be claimed for both NPS and Atal Pension Yojana contributions.
- The total deduction limit for Sections 80C + 80CCC + 80CCD(1) + Section 80CCD(1B) = ₹ 2,00,000.
- An additional deduction of ₹ 50,000 can be claimed under Section 80 CCD(1B) for self-contributions made to NPS or APY.
- Deductions that have been claimed under Section 80CCD(1) cannot be claimed again under Section 80CCD(1B) or Section 80C.
- The pension payments received from NPS/APY investments after retirement will be subject to income tax. However, the corpus on maturity and the amount used to purchase annuities will be completely tax-free.
- Deductions under Section 80CCD can be claimed while filing income tax returns. However, you may be required to produce proof for the same.
7. Eligibility for Claiming Deductions Under Section 80CCD
- The provisions of Section 80CCD are applicable to all Indian citizens who contribute to NPS or APY. Even NRIs can claim this deduction.
- Individuals must be over 18 years of age to claim Section 80CCD deductions.
- Additionally, only salaried individuals, whether in the government sector or private sector, and self-employed individuals are eligible to claim tax deductions under Section 80CCD. Hindu Undivided Families are not eligible.
When filing your income tax returns, as a salaried or self-employed individual, you can claim up to ₹ 1,50,000 jointly under Section 80CCD(1) for contributions made to NPS or APY individually and Section 80CCD(2) for contributions made by the employer. An additional ₹ 50,000 can be claimed for self-contributions made to NPS or APY under Section 80CCD(1B).
- Section 80TTA – Tax deduction for interest on savings account
Section 80TTA of the Income Tax Act, 1961 provides a deduction of up to Rs 10,000 on the income earned from interest on savings made in a bank, co-operative society or post office. There is no deduction for interest earned from fixed deposits.
Who can Claim 80TTA Deduction? Can NRIs Avail of a Deduction under 80TTA?
Section 80TTA deduction is available to an Individual and HUF.
Yes, NRIs can also avail a deduction under Section 80TTA. It is pertinent to note that NRIs are allowed to open only two types of accounts in India. i.e. NRE and NRO accounts. However, only the NRO savings account holders can claim the benefit of Section 80TTA as interest earned on NRE accounts are tax-free.
Note: This section is not applicable to senior citizens aged 60 years or more as Section 80TTB applies to them.
Which Type of Interest Incomes are Allowed as Deduction Under Section 80TTA
You can claim a deduction for interest income earned from the following:
- From a savings account with a bank
- From a savings account with a co-operative society carrying on the business of banking
- From a savings account with a post office
Interest Income Not Allowed as Deduction Under Section 80TTA
The deduction under Section 80TTA shall not be allowed for –
- Interest from fixed deposits
- Interest from recurring deposits
- Any other time deposits
Time deposits mean deposits repayable on the expiry of fixed periods.
Maximum Deduction Allowed Under Section 80TTA
The maximum deduction is limited to Rs 10,000. If your interest income is less than Rs 10,000, the entire interest income will be your deduction. If your interest income is more than Rs 10,000, your deduction shall be limited to Rs 10,000. (You have to consider your total interest income from all banks in case you have multiple accounts).
How to Claim Deduction Under Section 80TTA
First, add your total interest income under the head ‘Income from Other Sources’ in your return. Calculate your gross total income for the financial year from all the income heads and then show it as a deduction under Section 80TTA.
Important: You cannot claim Section 80TTA deduction if you opt for the new tax regime under Section 115BAC.
For Example:
If Mr A earns a salary income of Rs 5,00,000, interest on savings account with a bank is Rs 5,000 and on fixed deposits is Rs 15,000 in a financial year. Also, an eligible amount for deduction of Rs 10,000 under Section 80C. Then, taxable income will be computed under the old tax regime as below:-
| Particulars | Amount (in Rs) | Amount (in Rs) |
| Income from Salary Less: Standard Deduction | 5,00,000 (50,000) | 4,50,000 |
| Income from other sources -Interest on savings account -Interest on fixed deposits | 5,000 15,000 | 20,000 |
| Gross Total Income | 4,70,000 | |
| Less: Chapter VI-A deduction -80C -80TTA | 10,000 5,000 | (15,000) |
| Taxable Salary | 4,55,000 |
- Section 80TTB – Tax deduction on interest income for senior citizens
Section 80TTB is a provision whereby a taxpayer who is a resident senior citizen, aged 60 years and above at any time during a Financial Year (FY), can claim a specified amount as a deduction from his gross total income for that FY. This Section is applicable w.e.f. 1st April 2018.
Amount of deductions available under 80TTB
A deduction of Rs 50,000 or the income amount, whichever is lower, is allowed as deduction from the gross total income. Income here means any of the following income in aggregate:
- Interest on bank deposits (savings or fixed)
- Interest on deposits held in a co-operative society engaged in the business of banking, including a co-operative land mortgage bank or a co-operative land development bank
- Interest on post office deposits
Exceptions to Section 80TTB
Suppose the specified deposits are held by or on behalf of a partnership firm. In that case, an Association of Persons (AOP), or a Body of Individuals (BOI), Section 80TTB deduction is not available for the partner of such a firm or any member of such an AOP or BOI while computing their total income.
Section 80TTA vs 80TTB
Section 80TTA provides deductions similar to Section 80TTB. However, it offers interest deductions up to Rs 10,000 only on a savings account (held in a bank, co-operative bank, or a post office) and only for taxpayers below the age of 60 years or to a Hindu Undivided Family (HUF).
With the introduction of Section 80TTB exclusively for senior citizens, deduction under Section 80TTA is not available to senior citizens.
Difference between Section 80TTA and Section 80TTB
| Particulars | Section 80TTA | Section 80TTB |
| Applicability | Applicable to individuals and HUF except for senior citizens | Applicable to senior citizens |
| Specified income | Interest on savings account only | Interest on all kinds of deposits |
| Quantum of deduction | Up to Rs 10,000 | Up to Rs 50,000 |
Illustration on tax savings by senior citizens
Senior citizens already enjoy a higher basic exemption limit compared to normal taxpayers. The introduction of Section 80TTB further aids tax savings for senior citizens. Let us see how with the following example. Let us consider the following incomes for a taxpayer:
- Savings interest of Rs 5,000
- Interest on fixed deposits of Rs 2,00,000
- Other income of Rs 1,50,000
Now, the following table will help you understand how a senior citizen stands to benefit (as against a normal taxpayer) with the provisions of Section 80TTB
Computation of Taxable Income
| Particulars | Non-Senior Citizen (Rs) | Senior Citizen (Rs) |
| Savings interest | 5,000 | 5,000 |
| FD interest | 2,00,000 | 2,00,000 |
| Other income | 1,50,000 | 1,50,000 |
| Gross total income | 3,55,000 | 3,55,000 |
| Less: Deduction under Section 80TTA | 5,000 | Not Applicable |
| Less: Deduction under Section 80TTB | Not Applicable | 50,000 |
| Taxable income | 3,50,000 | 3,05,000 |
In the above example, a non-senior citizen can claim only a savings interest deduction of Rs 5,000 under Section 80TTA. Whereas a senior citizen can claim savings interest and fixed deposits interest deduction restricted up to Rs 50,000.
Read more about 80TTA here.