• Notification Date: 21-02-2024
  • Notification No: N/A

Income Tax Relief for Senior Citizens: FDs, Post Office Schemes Under Section 80TTB

To alleviate the tax burden on senior citizens, the Indian government, through the Union Budget 2018, introduced Section 80TTB of the Income Tax Act. This provision brings valuable tax benefits for individuals aged 60 or older, who are Indian residents for tax purposes, by offering a deduction of Rs 50,000 on interest income generated from various deposits. 

Section 80TTB The primary aim of Section 80TTB is to provide financial relief to senior citizens, encompassing those aged 60 or more. This deduction is applicable to interest earned from savings deposits, fixed deposits, recurring deposits, and even deposits under the Senior Citizen Saving Scheme. 

Eligibility Criteria To avail of the benefits under Section 80TTB, individuals must meet the age criterion of 60 years or more. This provision is exclusively designed to cater to the financial needs of senior citizens and ease their tax liabilities. 

Applicable Deposits Senior citizens can claim the deduction on interest income from a variety of deposits, including savings deposits, fixed deposits, recurring deposits, and deposits under the Senior Citizen Saving Scheme.  

This broad coverage ensures that individuals can maximize their tax benefits across different financial instruments. Senior Citizen Saving Scheme Inclusion One notable feature is that the deduction extends to interest earned on deposits under the Senior Citizen Saving Scheme, within the overall limit of Rs 50,000. This provides senior citizens with a holistic approach to managing their savings and investments while enjoying tax benefits.  

Features Of Section 80TTA And Section 80TTB It's crucial for taxpayers to differentiate between Section 80TTA and Section 80TTB, as they cater to distinct categories. Section 80TTA is tailored for individuals below 60 years and Hindu Undivided Families (HUFs), offering deductions up to Rs 10,000 solely on savings accounts. Notably, Section 80TTA does not extend its benefits to senior citizens, making Section 80TTB specifically advantageous for this demographic.