Tax Savings Tips for Senior Citizens: If you have opened an FD or savings account, then this news can prove to be big news for you. Let us tell you that a plan has been prepared by the government to give an exemption to the people on the FD and savings scheme. The time for filing income tax returns for the assessment year 2025-2026 is coming to an end. In such a situation, it is very important for senior citizens to know how they can save maximum tax. In this section, 80TTB will play a special role for them.
Know what Section 80TTB is?
Let us tell you that 80TTB was introduced in the budget of the year 2018. Through this, tax exemption is given to the elderly on interest. Under this provision, a deduction of up to Rs 50 thousand can be availed on interest received on bank, post office, cooperative, and society deposits.
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Who can avail the benefit?
Let us tell you that this exemption is available only to resident Indian senior citizens, i.e., people above 60 years of age. Keep in mind that this facility is available only in the old tax regime. In the new tax regime, its benefits have not been added in 115BAC.
On which income is the benefit available
Section 80TTB can be availed on interest received from savings account, FD, and post office deposit. This facility is special because it includes not only a savings account but also interest received on other deposit schemes.
If an elderly person gets 8 thousand rupees from a savings account, 1 lakh 80 thousand from an FD, and 3 lakh rupees from a pension, then the total income will be 4 lakh 88 thousand rupees. But after deduction of 50 thousand rupees under section 80TTB, the taxable income will be 4 lakh 38 thousand rupees.
Which documents will be required?
No extra paper is required to claim this deduction. Simple documents like PAN card, bank statement, and interest certificate, etc. are required. This process is very easy, and there is no hassle of extra income.
Know the difference between 80TTA and 80TTB
Let us tell you that a person below 60 years of age and an HUF can get a deduction of up to 10 thousand only on the interest received on a savings account under section 80TTA. But section 80TTB is more beneficial for the elderly because it includes all deposit schemes and a limit of up to 50 thousand.