Friday , June 14 2024

Tax deduction: Senior citizens get tax exemption under 80TTB, know what is the limit

Tax Planning: Through tax planning, we can ensure where to invest so that we can save maximum tax. Many people think about it while paying taxes or filing returns, but today we will tell you how and how much tax benefits senior citizens can get under 80TTB and 80TTA of the Income Tax Act.

What is the difference between 80TTB and 80TTA?

We can avail tax benefits under both section 80TTB and 80TTA of the Income Tax Act, but there is a difference between these two sections. Let us tell you that under Section 80TTA of the Income Tax Act, taxpayers below 60 years of age and Hindu Undivided Families (HUF) can avail interest deduction of up to Rs 10,000 only on bank savings account. Operative bank or post office. Please note that senior taxpayers do not get the benefit of this section.

At the same time, under 80TTB of the Income Tax Act, taxpayers above 60 years of age who are Indian residents can claim a deduction of Rs 50,000 on interest earned from post office, co-operative bank, bank. This applies to interest earned on FD deposits as well as savings deposits.

These are the main things that are important

There are some key things a taxpayer should know before applying for a tax deduction. Well, there are some things that should be kept in mind before applying for tax deduction.

  • Senior citizens include those who are 60 years of age or older.
  • Tax exemption is available only on interest received on savings bank account.
  • Cooperative Land Development Bank, which is affiliated to a cooperative society, will get the benefit of tax exemption only on interest on deposits.
  • You can avail tax deduction on the interest received on the amount deposited in post office account.
  • Senior citizens of the bank cannot deduct TDS on deposits up to Rs 50,000.
  • Senior citizens can avail tax exemption of up to Rs 50,000 under 80TTB.
  • If a senior citizen receives interest of more than Rs 50,000, he will have to pay tax as per the tax slab.
  • There is no tax benefit under 80TTB on company's FD or bonds.