(1) Senior Citizen to be allowed a Deduction of Rs. 50,000 on account of Interest on Deposits [Section 80TTB(1)]:
Where the gross total income of an assessee, being a senior citizen, includes any income by way of interest on deposits with—
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a banking company to which the Banking Regulation Act, 1949, applies (including any bank or banking institution referred to in section 51 of that Act);
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a co-operative society engaged in carrying on the business of banking (including a co-operative land mortgage bank or a co-operative land development bank); or
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a Post Office as defined in clause (A) of section 2 of the Indian Post Office Act, 1898,
Deduction under section 80TTB is available (from the assessment year 2019-20), if the following conditions are satisfied –
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The assessee is a senior citizen (i.e., a resident individual who is at least 60 years of age at any time during the previous year).
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His income includes interest on deposits with a bank/co-operative bank/Post Office (it may be interest on fixed deposits, interest on savings account or any other interest).
(2) Amount of Deduction under Section 80TTB -
If these conditions are satisfied, the assessee can claim deduction under section 80TTB which is equal to Rs. 50,000 or the amount of aforesaid interest, whichever is lower.
(3) No Deduction to be Allowed if Deposit held in the name of Partner / Member by the Firm / AOP [Section 80TTB(2)]:
Where the income referred to in section 80TTB(1) is derived from any deposit held by, or on behalf of, a firm, an association of persons or a body of individuals, no deduction shall be allowed under this section in respect of such income in computing the total income of any partner of the firm or any member of the association or any individual of the body.
Explanation.—For the purposes of this section, "senior citizen" means an individual resident in India who is of the age of sixty years or more at anytime during the relevant previous year. |
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