Section 80TTB is a tax deduction available under the Income Tax Act specifically for senior citizens in India. It allows individuals aged 60 years or above to claim a deduction on the interest income earned from savings accounts, fixed deposits, recurring deposits, and other bank deposits. The maximum deduction permitted under this section is ₹50,000 per financial year.
This deduction is particularly beneficial for senior taxpayers who rely on interest income as a source of earnings, helping reduce their overall taxable income and thus their tax liability. It applies to interest income received from banks, post offices, and cooperative banks but excludes interest from securities or corporate deposits.
Section 80TTB is distinct from Section 80TTA, which offers a smaller deduction limit and applies to individuals below 60 years. To claim this deduction, senior citizens must report their interest income in their income tax return and specify the deduction under Section 80TTB.
Understanding and utilizing Section 80TTB can be an important part of tax planning for senior citizens, ensuring compliance while optimizing tax savings. For more detailed guidance on income tax deductions and compliance, you can refer to trusted resources like FinTax24’s Income Tax Solutions.