Deduction in respect of interest on deposits in case of senior citizens - Section 80TTB - Income Tax - Ready Reckoner - Income Tax

Deduction in respect of interest on deposits in case of senior citizens - Section 80TTB Section 80TTB is inserted so as to allow a deduction upto ₹ 50,000/- in respect of interest income from deposits held by senior citizens. This amendment is effective from 1st April, 2019. However, no deduction under section 80TTA shall be allowed in these cases. Quantum of deduction A deduction of lower than ₹ 50,000 or an amount from a specified income is allowed from the gross total income. Specified income includes: 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. Exception: If the specified deposits are held by or on behalf of a partnership firm, 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 for any member of such an AOP or BOI, while computing their total income. Difference between section 80TTA and section 80TTB: Section 80TTA is applicable to individuals and HUF except for senior citizens whereas section 80TTB is applicable to senior citizens. Section 80TTA applies to Interest on savings account only whereas section 80TTB applies to Interest on all kinds of deposits. Quantum of deduction in respect of section 80TTA is upto ₹ 10,000 whereas it is upto ₹ 50,000 in case of section 80TTB.