2. Significant amendment in Budget 2018 for senior citizens
is the introduction of a new section i.e., Section 80 TTB
It is introduce to provide adequate relaxation in term of
financial outflow
3. SECTION 80TTB
Deduction under sec 80TTB is available only if taxpayer is :
Resident individual
Senior citizen ,aged 60 years and above at any time during
f.y
Claimed a deduction of lower of:
1.Rs.50000
2. Interest earned in aggregate on specified deposits
Section is applicable w.e.f 1 april 2018
4. Specified deposit
Specified deposit for the purpose of the section:
Fixed deposit
Recurring deposit
Deposit made in saving account
Such deposit Can be made with
bank
post office
co-operative society engaged in the business of banking
including co-operative land mortgage bank or a co-
operative land development bank
5. Important points :
1. if specified deposit held by senior citizen on behalf of
partnership firm , AOP , BOI , then no deduction is available to
that deposit to that person
2. With an introduction of Section 80TTB exclusively for senior
citizens, deduction under Section 80TTA is not available to
senior citizens.
3. Section 194A also been amended by Budget 2018 so as to raise
the threshold for deduction of tax at source on interest income
for senior citizens from Rs 10,000/- to Rs 50,000/-
6. SECTION 80TTA V/S 80TTB
Particulars Section 80TTA Section 80TTB
Applicability Applicable to
individuals and HUF
except senior
citizens
Applicable to senior citizens
Specified income Interest on savings
account only (Post
office and bank )
Interest on all kinds of
deposits( Bank , Post office
,cooperative society )
Quantum of
deduction
Upto Rs 10,000 Upto Rs 50,000