Income tax relief for Senior Citizens: All the details
Section 80TTB
Section 80TTB of the Income Tax Actgives tax benefits for individuals 60 orolder, by offering a deduction of Rs50,000 on interest income generatedfrom various deposits.
Deduction on…
It is applicable to interest earnedfrom savings deposits, fixeddeposits, recurring deposits, anddeposits under the SeniorCitizen Saving Scheme.
Covered Interests
Deductions apply to interest onbank deposits (savings or fixed),cooperative society deposits, andpost office deposits.
TDS Exemption
Banks cannot deduct TDS from interestpayments up to Rs 50,000 for seniorcitizens under Section 80TTB.
TDS Limit
The TDS limit for interest underSection 194A is extended to Rs50,000, given the exemptionunder Section 80TTB.
Interest exceeding Rs 50,000 attractstax as per the applicable slab rate forsenior citizens. Interest income fromcompany fixed deposits orbonds/NCDs does not qualify for reliefunder Section 80TTB.
Not 80 TTA
Section 80TTA is for individuals below60 years and Hindu UndividedFamilies (HUFs), offering deductionsup to Rs 10,000 solely on savingsaccounts. It does not extend itsbenefits to senior citizens.
Section 80TTB Income-tax Act, 1961 deductions and eligibility for senior citizens, explained