Under Section 80 TTB of the Income Tax Act (IT Act), a tax exemption has been provided on the income up to Rs 50,000 from the interest earned by senior citizens from deposits. The Union Government introduced this provision in the Budget-2018. Senior citizens get this rebate on income from bank, post office or co-operative bank deposits.
new Delhi. Under the Income Tax Act, the provision of tax benefits on certain income has been provided to senior citizens. In the same sequence, under Section 80-TTB of the Income Tax Act, Senior Citizens receive 50,000 in a financial year on deposits in a bank or post office or co-operative bank. There is a provision of tax exemption on interest income up to Rs. According to the provision, banks, post offices or co-operative banks cannot deduct TDS on this income from deposits. Explain that banks deduct 10% TDS on interest income.
This provision of tax benefit was introduced in the budget-2018
According to this provision of Income Tax Act, Sear Citizens will get the benefit of tax exemption on the income earned on both Saving Deposits and Fixed Deposits. The Central Government introduced this provision during Budget-2018 to provide a certain amount of tax exemption benefit to every senior citizen of the age of 60 years or more.
>> As per the provision, TDS will not be deducted on the income up to Rs 50,000 from the interest received on deposits of banks, post offices and co-operative bank senior citizens.
>> This provision of tax exemption for senior citizens was introduced under Section 194A of Income Tax Act.
>> The interest income up to Rs 50,000 for a financial year is calculated separately for each bank.
>> As per the provision, income tax will be applicable as per tax slab of taxpayer on interest income of more than Rs 50,000.
>> Senior citizens will not be exempt from income from interest on company fixed deposits, bonds, NCDs under Section 80 TTB of Income Tax.