If you keep a sizeable amount of money in savings bank accounts or bank fixed deposits, you must know about tax relief on interest income under Section 80TTA and 80TTB.
Let’s find out about the tax relief under Section 80TTA and Section 80TTB.
Claim deduction either under Section 80 TTA or 80 TTB, but not both
| Particulars | 80TTA | 80TTB | Remarks |
| Applicable wef | AY 2013-14 | AY 2019-20 | Till AY 2018-19 80TTA available to senior citizens also. |
| Deductor to whom applicable | Banks, Cooperative banks, Post offices etc. | Banks, Cooperative banks, Post offices etc. | Not applicable to other deductors like Companies who may have taken deposits. |
| Deductee to whom applicable | Individuals (other than Senior citizens) & HUF | A resident Senior Citizens | Either 80TTA or 80TTB can be claimed. |
| Residential status of deductee | Residents & Non-residents | Residents only | |
| Type of payment on which applicable | Interest on Savings account | Interest on Savings account & Fixed Deposits.
Interest on the deposits held in co-operative society mainly engaged in the business of banking. |
No benefit to persons other than senior citizens for interest on FD. |
| Maximum deduction | 10000 | 50000 | Deductor to give remarks “R” for 80TTB till amount reaches 50,000 |
| Where to claim | ITR (as TDS not applicable on interest on savings account) | TDS & ITR. |
Conclusion
Section 80TTB has proved to be a boon for all the senior citizen taxpayers in India. It provides focused financial aid to the entities as it segregates them from Section 80TTA. Therefore, Section 80TTB becomes a lucrative avenue for all the senior citizen taxpayers who want to avail tax benefits.