Tax Deduction Under Section 80TTB - Senior Citizen Benifit on FD

Section 80TTB is the deduction on ANY KIND OF FIXED DEPOSIT Or DEPOSIT INTEREST from Bank Savings Account or Post Office Savings. This section introduced in budget 2018.

The Maximum deduction under this section available up to Rs. 50,000/- applied for INDIVIDUAL Senior Citizen or Super Senior Citizen only. The maximum limit should be claimed under this section is Rs. 50,000/-

Section 80TTB

Explanation- Senior Citizen means Individuals aged from 60 years plus to Below 80 years. And Super Senior Citizen means Individuals aged from 80 years and above.

Conditions of Deduction Under Section 80TTB 

(1) Where the gross total income of an assessee, being a senior citizen includes any income by way of interest on deposits with—

 (a) a banking company to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act);

 (b) a co-operative society engaged in carrying on the business of banking (including a co-operative land mortgage bank or a co-operative land development bank); or

 (c) a Post Office as defined in clause (k) of section 2 of the Indian Post Office Act, 1898 (6 of 1898),

there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee, a deduction—

 (i) in a case where the amount of such income does not exceed in the aggregate fifty thousand rupees, the whole of such amount; and

 (ii) in any other case, fifty thousand rupees.

(2) Where the income referred to in sub-section (1) is derived from any deposit held by, or on behalf of, a firm, an association of persons or a body of individuals, no deduction shall be allowed under this section 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.