Section 80TTB


#1

Section 80TTB deals with senior citizens. Under this section there will be no TDS deduction by bank deductors upto rs 50,000.
So if you have earned income in terms of interest frim saving bank account,RD,FR or saving accou t in post office,then you are not oblised to deduct TDS upto rs 50,000.


#2

Hi mysmartkey,

Section 80TTB is a provision that was introduced in Budget 2018. Under this section, a resident Indian taxpayer who is a senior citizen aged 60 years and above at any time during a Financial Year (FY) can claim tax deductions from their gross total income for that FY. This section will be with effect from 1 April 2018.

A deduction of Rs 50,000 or amount of specified income, whichever is lower, will be allowed as deduction from the gross total income. Specified income can be any of the following income:
• Interest on bank deposits (fixed and savings)
• Interest on deposits held in co-operative society engaged in the business of banking This will include co-operative land mortgage bank or a co-operative land development bank
• Interest on post office deposits

Exceptions to Section 80TTB

Since this section is for individuals, if specified deposits are held by or on behalf of a partnership firm, association of persons (AOP) or body of individuals (BOI), the deductions under Section 80TTB cannot be availed.

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Cheers,
BB Expert