Deductions u/s 80TTB
21 Oct 2022
Deduction under section 80 TTB
Section 80 TTB provides the deduction from the Interest of Saving Bank account to Individuals and HUF who are Senior Citizens (Age 60 years or above). Such Deduction can be claimed from the Gross Total Income while filing the Income tax return
Eligibility for claiming Deduction under Section 80 TTB:
The following entities can claim deductions under section 80TTA
Both entities mentioned above can claim deductions under Section 80 TTB provided that they hold savings accounts with the following:
Co-operative banks or a co-operative society carrying on the business of banking
1.) Deduction under this section is not available for the individual below the Age of 60 Years they are eligible for the deduction 80TTA mentioned below.
2) If the said interest is derived from any deposit from any saving bank account held by or on the behalf of a firm or AOP/ BOI No Deduction shall be available in respect of the such income in computing the total income of any partner of the firm or any member of the AOP or BOI.
3) If You opt for the New Regime under section 115 BAC then this deduction shall not be available.
Interest on the NRI account
Interest on the NRE account is already covered under section 10(4) but the Interest on the NRO account shall be covered under the deduction of the section 80 TTB.
Quantum of the Deduction
Actual amount of Interest Earned
OR } Whichever is less.
If Mr Rohit earns a salary income of Rs 10,00,000, interest on savings account with a bank is Rs 5,000 and on fixed deposits is Rs 15,000 in a financial year. He is eligible for deduction of Rs 50,000 under Section 80C. Then, taxable income will be computed under the old tax regime as below:-
Taxable Income will be Computed Under New Regime of Sec 115 BAC
The Deduction under section 80TTB shall be available only for the Individuals who are Senior Citizen upto maximum amount of Rs. 50000 only if such person is not opt for the New Regime.