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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
View AnswerTax as per FY 2017-18
Tax as per FY 2018-19
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
