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NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Income from Other Sources

Meera, a senior citizen, earns interest of Rs 62,000 on bank fixed deposits during the year. Under the old regime, she also has Rs 9,000 of savings account interest. Ignoring other deductions, what is the maximum deduction available to her for this interest under section 80TTB, and what remains taxable from these two items combined (Rs 71,000)?

Meera can claim up to Rs 50,000 under section 80TTB as a senior citizen, covering both fixed deposit and savings interest. Of the Rs 71,000 total interest, Rs 21,000 remains taxable at her slab rate under the old regime.

  1. ADeduction Rs 50,000; taxable Rs 21,000Correct
  2. BDeduction Rs 10,000; taxable Rs 61,000
  3. CDeduction Rs 50,000; taxable Rs 12,000
  4. DDeduction Rs 71,000; taxable Nil

Explanation

Section 80TTB allows a senior citizen a deduction up to Rs 50,000 on interest from deposits with banks, co-operative banks and post offices. Total interest is Rs 71,000, so taxable is 71,000 − 50,000 = Rs 21,000. Rs 10,000 applies to non-senior citizens under 80TTA on savings interest only.

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