[Section 80TTB]: Deduction in respect of Interest on Deposits in case of Senior Citizens

Deduction Under Section 80TTB  in respect of Interest on Deposits in case of Senior Citizens – to what extent available is depends upon the following conditions if satisfied :-

(1)      Senior citizen to be allowed a Deduction of Rs.50,000 on account of Interest on Deposits [Section 80TTB(1)]:

Where the gross total income of an assessee, being a senior citizen, includes any income by way of interest on deposits with—

(a)  a banking company to which the Banking Regulation Act, 1949, applies (including any bank or banking institution referred to in section 51 of that Act);

(b)  a co-operative society engaged in carrying on the business of banking (including a cooperative land mortgage bank or a co-operative land development bank); or

(c)  a Post Office as defined in clause (A) of section 2 of the Indian Post Office Act, 1898, there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee, a deduction—

(i) in a case where the amount of such income does not exceed in the aggregate Rs.50,000, the whole of such amount; and

(ii) in any other case, Rs.50,000.

(2)      No Deduction to be allowed if Deposit held in the name of Partner / Member by the Firm /AOP [Section 80TTB(2)]:

Where the income referred to in section 80TTB(1) is derived from any deposit held by, or on behalf of, a firm, an association of persons or a body of individuals, no deduction shall be allowed under this section in respect of such income in computing the total income of any partner of the firm or any member of the association or any individual of the body.