Section 80TTB of Income Tax Act

Section 80TTB of Income Tax Act

Section 80TTB is the very important Part of the deduction available to Individual and HUF form their gross Income. Section 80TTB provides the deduction for the interest on deposits in case of senior citizens as the taxpayer in the previous year. Following is the bare act of Section 80TTB:

Deduction in respect of interest on deposits in case of senior citizens

(1) Where the gross total income of an assessee, being a senior citizen, includes any income by way of interest on deposits with—

 (a) a banking company to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act);

 (b) 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

 (c) a Post Office as defined in clause (k) of section 2 of the Indian Post Office Act, 1898 (6 of 1898),

there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee, a deduction—

  (i) in a case where the amount of such income does not exceed in the aggregate fifty thousand rupees, the whole of such amount; and

 (ii) in any other case, fifty thousand rupees.

(2) Where the income referred to in sub-section (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 any time during the relevant previous year.