This deduction is available for Senior Citizens only

As per this section,deduction of maximum 50000 is available on Interest earned on Deposits by Senior Citizens

This deposit may be in  Banks ,FD ,Post Office Bank

 

Note:-

Interest on Deposits is mentioned in this section(not time deposits)

Hence,by analysis of this section,it includes all types of interest whether savings bank interest or fd interest(interests on fixed deposits ) or RD Interest(interest on Recurring Deposits)

 

Note

Section 80TTA will not be applicable now for Senior Citizens

In this case,now Section 80TTB will only be applicable

As per Section 80TTA, deduction of savings bank interest available of max 10000

Difference between Section 80TTA and Section 80TTB

NORMAL CITIZENS (BELOW 60) SENIOR CITIZENS (60 OR MORE)
They will get Deduction Under Section 80TTA They will get Deduction Under Section 80TTB
Maximum 10000 Deduction Available Maximum 50000 Deduction Available
Deduction is for Savings Interest Only,no deduction for FD) Deduction is for All types of Interest (whether Savings or FD)

 

Q1

Suppose a person has only interest income as follows

Particulars NORMAL CITIZEN SENIOR CITIZEN
Savings Interest 30000 30000
FD Interest 370000 370000
Total Interest 400000 400000

Calculate Tax as per FY 2017-18 and FY 2018-19

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Q2

Suppose a Senior citizen has Annual Income as follows

Pension Income 30000 p,m

FD Interest 20000 per annum

Savings interest 6000 per annum

Calculate Tax as per FY 2017-18 AND FY 2018-19

View Answer

Q3

Suppose a Normal citizen(less than 60 years) has Annual Income as follows

Salary Income 30000 p,m

FD Interest 20000 per annum

Savings interest 6000 per annum

 

Calculate Tax as per FY 2017-18 AND FY 2018-10

View Answer
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CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .