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The government gives several sorts of financial assistance to senior citizens in order to assist them in living a peaceful, carefree retirement. The Income Tax Act of India provides various deductions to resident tax-paying senior citizens. Section 80TTB is one such deduction that the government recently enacted. Section 80TTB was incorporated into the Finance Bill in 2018 and has been in effect since then. Senior citizens over the age of 60 are eligible for tax deductions of up to Rs 50,000 on interest income earned during a given financial year under Section 80TTB of the Income Tax Act. Consider the rules and limitations that apply to claiming Section 80TTB benefits.

Terms & conditions

-The exemption on interest income is restricted to Rs 50,000 per year.

-Residents over the age of 60 may claim deductions.

-Senior persons who have fixed deposit or savings accounts with banks, cooperative banks, or post offices and who receive interest on those deposits or accounts are eligible for the Section 80TTB deduction.

-Interest income is tax-deductible under Section 80TTB in excess of the deduction limit of Rs 1.5 lakh under Section 80C.

Eligibility for section 80TTB deductions

The Income Tax Act provides that deductions under Section 80TTB may be claimed by:

— Senior citizens who are taxpayers

— Residents of Indian origin

— Savings accounts, fixed deposit accounts, and recurring deposit accounts owned by senior citizens.

— The accounts are to be maintained with banks, post offices, or cooperative societies.

What are the exceptions?

— Apart from senior citizens, individuals and Hindu Undivided Families are not eligible for the Section 80TTB tax exemption.

— Non-resident Indians are not eligible for tax deductions under section 80TTB.

— Interest income earned on a savings account held exclusively by associates of persons, businesses, or a body of individuals is not deductible under Section 80TTB.

Section 80TTB has benefited senior citizens throughout India. As a result, Section 80TTB provides a huge opportunity for senior citizens to take advantage of tax benefits. Additionally, certain parts of the Income Tax Act, such as Section 80C and Section 80D, provide deductions to non-senior people.

That said, you can claim the 80TTB deduction when you file your income tax return. Income should first be included in your income, and then the 80TTB deduction can be claimed.