Section 80TTB: New tax provision provides deduction on bank deposit interest to senior citizens, check limit here

Tax Deduction: Tax planning has become very important to achieve financial goals. Often people search for tax deduction options while filing Income Tax Return (ITR). In such a situation, today we will tell how and how much tax benefits senior citizens can avail under Income Tax Act 80TTB and 80TTA.

Tax Planning: Through tax planning, we can ensure where to invest so that we can save maximum tax.

Many people think about it while paying tax or filing returns, but today we will tell you how and how much tax benefits senior citizens can avail under 80TTB and 80TTA of the Income Tax Act.

What is the difference between 80TTB and 80TTA

We can avail tax benefits under both sections 80TTB and 80TTA of the Income Tax Act, but there is a difference between these two sections. Let us tell you that under Section 80TTA of the Income Tax Act, taxpayers below 60 years of age and Hindu Undivided Families (HUF) can avail the benefit of interest deduction of up to Rs 10,000 only on the savings account of a bank, cooperative bank or post office. Please note that senior taxpayers do not get the benefit of this section.

At the same time, under 80TTB of the Income Tax Act, taxpayers above 60 years of age who are Indian residents can claim a deduction of Rs 50,000 on interest earned from post office, co-operative bank, bank. This applies to interest earned on FD deposits as well as savings deposits.

These are the main things that are important

• Before applying for tax deduction, the taxpayer must know some key points. Well, there are a few things that should be kept in mind before applying for tax deduction.
• Senior citizens include those who are 60 years of age or older.
• Tax benefit is available only on the interest received on savings bank account.
• Cooperative Land Development Bank, which is associated with a cooperative society, will get the benefit of tax exemption only on the interest on the deposit amount.
• You can avail tax deduction on the interest received on the amount deposited in post office account.
• Bank senior citizens cannot deduct TDS on deposits up to Rs 50,000.
• Senior citizens can avail tax exemption of up to Rs 50,000 under 80TTB.
• If a senior citizen receives interest of more than Rs 50,000 then he will have to pay tax as per the tax slab.
• No tax benefit is available under 80TTB on company’s FD or bonds.