Section 80TTB —
₹50,000 for Senior Citizens
The ₹50,000 deduction on interest income for resident senior citizens (60+): what deposits it covers, why it beats Section 80TTA, why it needs the old regime, and how TDS & Form 15H work.
Section 80TTB lets a resident senior citizen (aged 60 or more) deduct up to ₹50,000 a year on interest earned from bank/post-office/co-operative-bank deposits — savings accounts, fixed deposits, recurring deposits, SCSS and NSC. The deduction is available only under the old tax regime; it cannot be claimed in the new (default) regime under Section 115BAC. HUFs and NRIs are not eligible.
What Interest Is Covered Under 80TTB?
80TTB covers interest from deposits held with a bank, post office or co-operative bank. It does not cover non-deposit income like dividends or bond interest. Note it caps the total across all these sources at ₹50,000.
| Interest source | Covered? | Notes |
|---|---|---|
| Savings account (bank / post office) | Yes | Includes co-operative bank savings |
| Fixed deposit (FD) interest | Yes | Key benefit vs 80TTA |
| Recurring deposit (RD) interest | Yes | Bank / post-office RD |
| Senior Citizen Savings Scheme (SCSS) | Yes | Deposit interest |
| Post office time deposit / MIS | Yes | Deposit-based |
| National Savings Certificate (NSC) | Yes | Accrued deposit interest |
| Dividend from shares / mutual funds | No | Not interest from a deposit |
| Interest on bonds / debentures | No | Bonds are not deposits |
Aggregate deduction across all eligible sources is capped at ₹50,000 per financial year.
Section 80TTB is a Chapter VI-A deduction and is not available in the new (default) tax regime. A senior citizen with large interest income should compare both regimes — the old regime plus the ₹50,000 deduction can beat the new regime's lower slabs and ₹75,000 standard deduction, but not always.
Who Can Claim Section 80TTB?
80TTB is a narrow, senior-specific deduction. You must be a resident individual aged 60 or more at any time during the financial year.
You can claim if
- You are a resident individual
- You are 60 years or older during FY 2025-26
- You earn deposit interest (FD, RD, savings, SCSS, NSC)
- You file under the old tax regime
You cannot claim if
- You are a non-resident (NRI), even if 60+
- You are a HUF or other entity
- You are below 60 — use Section 80TTA instead
- You opt for the new regime under Section 115BAC
Senior citizen unsure which regime saves more tax? Get your return optimised.
Talk to a Tax Expert →Section 80TTA vs Section 80TTB
For a senior citizen, 80TTB replaces 80TTA entirely — you claim one, not both. 80TTB is far more generous: five times the limit and it includes fixed-deposit interest.
Section 80TTA — below 60
- Individuals & HUF under 60
- Savings-account interest only
- FD / RD interest NOT covered
- Old regime only
Section 80TTB — senior citizens
- Resident individuals aged 60+
- All deposit interest — FD, RD, SCSS, savings
- 5× the deduction limit
- Old regime only
| Feature | Section 80TTA | Section 80TTB |
|---|---|---|
| Who can claim | Individuals & HUF below 60 | Resident senior citizens 60+ |
| Maximum deduction | ₹10,000 | ₹50,000 |
| Interest covered | Savings interest only | All deposit interest (FD, RD, SCSS, savings) |
| FD interest included? | No | Yes |
| Available in new regime? | No | No |
| Can a senior claim it? | No | Yes — this one |
A senior citizen cannot claim 80TTA and 80TTB together — 80TTB is the applicable section.
80TTB in Action — Senior with FD Interest
Mr. Suresh (age 68), a resident senior citizen, earns ₹60,000 FD interest + ₹8,000 savings-account interest in FY 2025-26 and files under the old regime.
80TTB Senior citizen (60+)
80TTA If he were under 60
Being 60+ turns ₹68,000 of interest into just ₹18,000 taxable. Under 80TTA the same person would have ₹60,000 taxable — 80TTB saves tax on ₹42,000 more of income.
Want this optimised on your actual return, across both regimes?
File My ITR →TDS on FD Interest & Form 15H
80TTB is an ITR deduction — banks still deduct TDS under Section 194A if interest crosses the threshold. Budget 2025 raised the senior-citizen TDS threshold to ₹1,00,000 (from ₹50,000) on bank / post-office / co-operative-bank interest, effective 1 April 2025 (FY 2025-26).
| Category | 194A TDS threshold (FY 2025-26) | TDS rate |
|---|---|---|
| Senior citizens (60+) — bank/PO/co-op | ₹1,00,000/yr | 10% |
| Other individuals — bank/PO/co-op | ₹50,000/yr | 10% |
| No valid PAN with the bank | — | 20% |
Thresholds are per payer (per bank), raised by Budget 2025 w.e.f 01-04-2025. Rate is 10% on the interest above the threshold.
The ₹50,000 80TTB deduction and the ₹1,00,000 194A TDS threshold are separate rules. Even if TDS is deducted, you still claim the 80TTB deduction in your ITR and get any excess TDS refunded. To stop TDS at source, a senior with nil estimated tax liability can file Form 15H at each bank at the start of the year.
- Submit Form 15H (seniors) to each bank in April; Form 15G is for those below 60.
- Condition for 15H: your estimated total tax liability for the year must be nil — not merely income below the basic exemption limit.
- PAN is mandatory; without it TDS is deducted at 20% and 15H is invalid.
- Even with 15H filed, interest is still reportable — declare it in your ITR and claim the 80TTB deduction.
The Income-tax Act, 2025 renumbers provisions from AY 2026-27, but the well-known label "Section 80TTB" remains the search-and-reference term for the senior-citizen ₹50,000 interest deduction. The substance — ₹50,000 cap, resident 60+, old regime only — is unchanged. Always confirm the current clause on the official portal before filing.
Section 80TTB — Frequently Asked Questions
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