Deduction on interest for Senior citizens U/s - 80TTB from A.Y. 2019-2020

Sec. 80TTB newly inserted vide Budget 2018 wherein, provide deduction of Rs. 50000/-on interest income. This deduction is available to senior citizens from A.Y. 2019-2020.

This deduction is allowed on interest earned by a senior citizen includes any interest income on deposit with banking company or banking institution to which Banking regulation Act,1949 applies -

• From saving account with a bank, co-operative bank and post office
• From Fixed deposit ,Recurring deposit(RD) and time deposit.

How to avail deduction :- 

1. Maximum deduction of Rs. 50000/- or,
2. Interest earned during the year from specified avobe.

                              Whichever is Lower

Note:- 

1.  Here deduction u/s 80 TTA is not allowed, when assessee get deduction U/s 80TTB.
2.  No deduction shall be allowed under this section, where interest earned by any deposit with firm,body of individual, association of person. Eg. Interest earned from Partner capital.