Section 80TTB Deduction For Senior Citizens FY 2018-19

Section 80TTB has been proposed In the financial year 2018-19 for the benefit of senior citizens.

Under this section senior citizens CAN take tax Rebate for the income earned in terms of interest from a saving bank account,FD RD.

Tax Benefit under section 80TTB

Persons having age greater than or equal to 60 years will get rs 50,000 Rebate .

How to calculate Rebate of rs 50,000.

Suppose you have income of rs 6 lakhs in your saving bank account.

And you have got interest of rs 50,000 from rs 6 lakhs.

Now your income from other sources is rs 50,000.

Hence you can put all rs 50,000 in sec 80TTB Starting w,.e.f 1st April 2018 to 31st March 2019.

So all rs 50,000 will be tax free in case of a senior citizen.

Special Note:

It may be noted here that rs 50,000 deduction available for the following in case of a senior citizen:

  • Interest income from saving bank account.
  • Interest income from FD in any bank.
  • Interest income from RD(Recurring Deposite).
  • Interest income from saving account in post office.

Applicability of 80TTB Section

Section 80TTB only applicable for senior citizens aging from 60 years onwards.

Conclusion:

Finally it is a huge relief for senior citizens in Budget 2018-19.

And they can now take benefit of rs 50,000 deduction on FD OR RD SAVING INTEREST WHETHER IN BANK OR IN POST OFFICE.

is a professional blogger,teacher and income tax expert

Kuldeep Singh
 

is a professional blogger,teacher and income tax expert