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NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Tax Provisions for Special Cases

A resident senior citizen, aged 65, receives bank fixed deposit interest of Rs 70,000 in a year, and her bank deducts TDS on it. Under the old regime, which deduction is available specifically to senior citizens for interest from deposits with banks?

Section 80TTB allows a senior citizen to deduct up to Rs 50,000 of interest from bank, post office and co-operative bank deposits under the old regime. Section 80TTA, with a Rs 10,000 limit, applies only to non-senior individuals and savings account interest.

  1. ASection 80TTB, up to Rs 50,000Correct
  2. BSection 80TTA, up to Rs 10,000
  3. CSection 80C, up to Rs 1.5 lakh on interest
  4. DSection 80D, up to Rs 25,000 on interest

Explanation

Senior citizens (60 years and above) can claim a deduction under Section 80TTB of up to Rs 50,000 on interest from deposits with banks, post offices and co-operative banks. Section 80TTA applies to non-senior individuals and covers savings account interest only. So the senior can reduce Rs 70,000 interest by Rs 50,000 under the old regime.

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