ITR Filing 2024: What Deductions Does Section 80TTB Provide For Senior Citizens?
Section 80TTB was introduced in the Income Tax Act to provide tax relief to senior citizens.
Section 80TTB was introduced in the Income Tax Act to provide tax relief to senior citizens.
Section 80TTB of The Income Tax Act
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The government introduced several tax benefits for senior citizens in the 2018 Union Budget to alleviate the burden of high healthcare costs and ensure financial security and ease of living. To implement the changes, it amended Section 80TTA to introduce Section 80TTB in the Income Tax Act. Section 80TTB offers significant tax relief to senior citizens who depend on interest income from fixed deposits and other fixed-income instruments.
Also Read: ITR Filing 2024: How To Submit A Condonation Request For Delay In E-Verifying Returns
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For instance, it allows deductions on interest income up to Rs 50,000 in a financial year. The interest income could be from banks, co-operative societies, or post office deposit accounts.
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To avail of this deduction, they can simply submit their PAN card, the interest certificate and the bank statement for the financial year. No other documents are required.
Any senior citizen who is 60 years or older and a resident of India can avail of the Section 80TTB benefit under the Income Tax Act of 1961. This benefit allows deductions from their gross total income in a financial year starting April 1, 2018. However, it is available only if the individual leaves the default tax regime under section 115BAC(1A).
However, Section 80TTB deduction is not available for partners or members of an Association of Persons (AOP) or Body of Individuals (BOI) holding specified deposits in a partnership firm, when computing their total income.
Also Read: ITR Filing 2024: How Much Deduction Can Differently Abled People Avail Under Section 80U?
Section 80TTA offers interest deductions up to Rs 10,000 on savings accounts held in banks, co-operative banks, or post offices for taxpayers below 60 years old or to a Hindu Undivided Family (HUF). However, due to the introduction of Section 80TTB exclusively for senior citizens, the deduction under Section 80TTA is no longer available. However, in 80TTB, deductions of up to Rs 50,000 are available to them.
Furthermore, Section 115AC of the Income Tax Act provides special relief to non-resident Indians (NRIs) on income from foreign assets and investments in specified instruments. It offers concessional tax rates, or reduced rates on certain incomes such as interest, dividends, and capital gains, to incentivise NRIs to invest in India by providing favourable tax treatment.
The government also provides various other benefits to senior citizens, such as higher deductions for medical expenses, higher interest rates for bank deposits and investments in fixed-income instruments, and a higher income exemption limit.
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Senior and super senior citizens get higher tax relief than ordinary taxpayers; learn more about the tax slabs and benefits.
The last day of the financial year is considered a deadline to fulfil financial obligations, such as tax-saving investments, furnishing updated returns, etc. Failing to do so may result in a penalty.
Are you a senior citizen with an income below the taxable limit? Filing an income tax return (ITR) can offer several benefits; however, sometimes, not filing an ITR can cause trouble, too!
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