Home->Resources->Income Tax->

 

80TTB- Deduction in respect of interest on deposit accounts of senior citizens

    [Updated as on Dec 31, 2019]

​

• Deduction is available to a senior citizen assessee under Section 80TTB.

• Deduction is available on the interest amount earned on deposits of any nature whether time deposits or savings deposits with a bank, cooperative banks or post offices and which is included in the gross total income of the assessee.

• If any interest is earned on any deposits held by, or on behalf of any firm, an association of persons or a body of individuals, no deduction shall be in respect of such income in computing the total income of any partner of the firm or any member of the association or any individual of the body.

• For the purposes of this section, "senior citizen" means an individual resident in India who is of the age of sixty years or more at any time during the relevant previous year

 

Amount of deduction

​

The amount of deduction allowable shall be lower of the following:

• Interest earned on such deposits

• Fifty thousand rupees

​

​

Illustrations on Section 80TTB

​

1. Joseph, a senior citizen has received Rs.22000 as interest against various fixed deposits and Rs.12000 as interest in savings account with SBI. What is his eligible deduction amount under section 80TTB?

        He is eligible for a total deduction of Rs.34000 as the interest earned on deposits of any nature qualifies for deduction under section 80TTB.