Section 80TTB — Senior Citizen Interest Deduction ₹50,000

Updated: 3 June 2026

Section 80TTB allows resident senior citizens (aged 60 years or more) to claim a deduction of up to ₹50,000 per year on interest income earned from bank savings accounts, fixed deposits, recurring deposits, SCSS, NSC, post office schemes, and other deposits. This deduction is available only under the old tax regime.

₹50,000

Maximum deduction under Section 80TTB for senior citizens (60+) on all interest income from deposits — covering FD, savings, SCSS, RD, NSC & post office schemes. Not available in new tax regime.

Who Can Claim Section 80TTB?

Section 80TTB is available to:

Resident senior citizens — individuals aged 60 years or more at any time during the financial year
Applicable to individuals only — HUF cannot claim Section 80TTB

Section 80TTB is not available to:

Non-resident Indians (NRIs), even if 60+
Hindu Undivided Families (HUF)
Senior citizens who opt for the new tax regime under Section 115BAC
Individuals below 60 years — they must use Section 80TTA instead

Interest Income Covered Under Section 80TTB

The following interest sources are eligible for the ₹50,000 deduction:

Interest Source	Covered by 80TTB?
Savings account interest (bank / post office)	Yes
Fixed deposit (FD) interest	Yes
Recurring deposit (RD) interest	Yes
Senior Citizen Savings Scheme (SCSS) interest	Yes
National Savings Certificate (NSC) interest	Yes
Post office time deposit / MIS interest	Yes
Dividend income from shares or mutual funds	No — not interest from a deposit
Interest on bonds / debentures	No — bonds are not deposits

Section 80TTA vs Section 80TTB — Key Differences

Senior citizens are often confused between these two sections. The rule is simple: 80TTB completely replaces 80TTA for senior citizens. You cannot claim both.

Feature	Section 80TTA	Section 80TTB
Who can claim	Individuals & HUF below 60 years	Resident senior citizens 60+
Maximum deduction	₹10,000 per year	₹50,000 per year
Interest covered	Savings account interest only	All deposit interest (FD, RD, SCSS, NSC, savings)
FD interest included?	No	Yes
Available in new regime?	No	No
Can senior citizen claim 80TTA?	No — 80TTB applies instead	80TTB is the applicable section

Calculation Example — Senior Citizen with FD Interest

Scenario: Mr. Suresh (age 68), resident senior citizen, earns ₹60,000 as FD interest + ₹8,000 as savings account interest in FY 2025-26. Old tax regime chosen.

Item	Amount
FD interest earned	₹60,000
Savings account interest earned	₹8,000
Total interest income	₹68,000
Deduction u/s 80TTB (capped at ₹50,000)	₹50,000
Net taxable interest income	₹18,000

If Mr. Suresh had been below 60, he could only claim ₹10,000 under 80TTA — and only on savings account interest (₹8,000), leaving ₹60,000 FD interest fully taxable.

TDS on FD Interest for Senior Citizens

The TDS threshold for senior citizens is higher than for regular individuals:

Category	TDS Threshold (FD Interest)	TDS Rate
Senior citizens (60+)	₹50,000 per year per bank	10%
Non-senior individuals	₹40,000 per year per bank	10%

To avoid TDS being deducted, senior citizens can submit Form 15H to their bank at the start of each financial year. Key condition: your estimated total tax liability for the year must be nil — not just that income is below the basic exemption limit. If you have pension income plus FD interest that pushes your tax above zero, Form 15H cannot be submitted.

Form 15H — How to Submit

Form 15H must be submitted separately to each bank where you hold FDs. It must be submitted at the beginning of the financial year (April). Key points:

Submit one Form 15H per bank branch (or consolidated if bank has a central TDS processing system)
Declare estimated total income and confirm estimated tax = nil
PAN is mandatory — without PAN, TDS is deducted at 20%
Even if Form 15H is submitted, interest is still reportable income — you must show it in ITR and claim 80TTB deduction

Frequently Asked Questions

Is Section 80TTB available under the new tax regime?

No. Section 80TTB is available only under the old tax regime. If you opt for the new tax regime under Section 115BAC for FY 2023-24 onwards, you cannot claim the ₹50,000 deduction on interest income. Senior citizens who earn significant interest income should compare both regimes before choosing.

Can a non-resident Indian (NRI) senior citizen claim deduction under Section 80TTB?

No. Section 80TTB is available only to resident senior citizens aged 60 years or more. NRI senior citizens cannot claim this deduction. NRI seniors may, however, check for relief under DTAA (Double Taxation Avoidance Agreements) for interest income in their country of residence.

Does Section 80TTB cover interest from NSC, SCSS, and post office schemes?

Yes. Section 80TTB covers interest income from all types of deposits — including savings accounts, fixed deposits, recurring deposits, National Savings Certificates (NSC), Senior Citizen Savings Scheme (SCSS), and post office savings schemes. The aggregate deduction is capped at ₹50,000 per financial year.

What is the difference between Form 15G and Form 15H for TDS on FD interest?

Form 15H is for senior citizens (60+) and Form 15G is for individuals below 60. Senior citizens must submit Form 15H to their bank at the start of each financial year if they expect their total income (after deductions) to be below the taxable limit, so the bank does not deduct TDS on FD interest. The key condition: your estimated tax liability for the year must be nil — not just that income is below the basic exemption limit.

Can a senior citizen claim both Section 80TTA and Section 80TTB?

No. Section 80TTB was specifically introduced for senior citizens as a replacement for Section 80TTA. A senior citizen (60+) can only claim 80TTB (up to ₹50,000 on all interest income). Section 80TTA (up to ₹10,000, only savings account interest) is available for individuals and HUF members below 60 years. Both sections cannot be claimed simultaneously by the same person.

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