Section 80TTB allows senior citizens to claim a tax deduction of up to ₹50,000 on interest income earned from savings, fixed deposits, or recurring deposits in banks, post offices, and co-operative societies.
Who Can Claim This?
Only resident senior citizens, i.e., individuals aged 60 years or above, can claim this benefit.
Applies to:
- Retired salaried individuals
- Pensioners
- Senior investors with bank/post office accounts
Not available to:
- Non-senior citizens
- HUFs, firms, or companies
What Types of Income Are Covered?
Section 80TTB covers:
- Interest from savings accounts
- Interest from fixed deposits (FDs)
- Interest from recurring deposits (RDs)
- Interest from co-operative banks and post office deposits
Important:
It does not cover interest from corporate bonds, mutual funds, or debentures.
Deduction Limit
- Maximum deduction allowed: ₹50,000 per year
- If your interest income is less than ₹50,000, you can claim the full amount
- If it’s more than ₹50,000, deduction is capped at ₹50,000
Simple Example
- Mr. Sharma, age 65, earns ₹45,000 interest from FDs and ₹10,000 from a savings account.
- Total interest income = ₹55,000
- Deduction allowed under 80TTB = ₹50,000
- Taxable interest = ₹5,000
80TTB vs 80TTA
| Feature | Section 80TTB | Section 80TTA |
|---|---|---|
| Who can claim | Senior citizens | Non-senior individuals |
| Max deduction | ₹50,000 | ₹10,000 |
| Covers FD/RD interest? | Yes | No (savings a/c only) |
Points to Remember
- You don’t need to invest anything—it’s based on interest earned.
- You must be a resident of India, aged 60+ at any time during the financial year.
- Claim it under the old tax regime—not available in the new regime (without exemptions).
