Definition
Section 80TTB
Section 80TTB gives senior citizens a larger deduction on interest income from deposits with banks, co-operative banks and the post office.
Section 80TTB is available only to resident senior citizens (60 and above) and allows a deduction on interest from savings accounts as well as fixed and recurring deposits — a wider scope than the savings-only 80TTA available to younger taxpayers.
The deduction limit is significantly higher than 80TTA's, recognising that many retirees rely on deposit interest. A senior who uses 80TTB cannot also claim 80TTA.
It is an old regime benefit. Seniors should also remember Form 15H, which can prevent TDS on interest when their total income is below the taxable threshold.
Related terms
- Section 80TTASection 80TTA allows individuals (below 60) and HUFs to deduct interest earned on savings bank accounts up to a specified limit.
- Senior Citizen Savings Scheme (SCSS)SCSS is a government savings scheme for people aged 60 and above, offering attractive, regular interest income with sovereign safety.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.