To understand the new tax regime better, specifically: Is 80TTB applicable in new tax regime for senior citizens? I must say that Section 80TTB provides senior citizens (aged 60 +) a deduction of up to Rs. 50,000 on interest income from bank/post office/co op deposits including savings, fixed, and recurring deposits. However, this deduction applies only under the old tax regime. If a senior citizen opts for the new tax regime (Section 115BAC) with concessional slab rates, Section 80TTB is not available, alongside other exemptions like Section 80TTA.
Is 80TTB Deduction Available in the New Tax Regime?
Under the old regime, senior citizens can effectively reduce their taxable income by up to Rs. 50,000 via 80TTB, in addition to basic exemptions and other deductions like 80C or 80D. The new regime, while offering lower slab rates, disallows nearly all such deductions making it unattractive for those whose interest income relief is crucial.
Senior taxpayers should compare total tax liability under both regimes. If interest earnings are substantial, staying under the old regime and claiming 80TTB may result in greater tax savings despite higher slab rates. If not, the new regime might still be beneficial.
To claim 80TTB, choose the old tax regime when filing your ITR (e.g., ITR 1/2), report total interest under “Income from Other Sources,” and include the deduction in the 80TTB field; no additional documentation is usually required.
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Is 80TTB Applicable In New Tax Regime For Senior Citizens?
nitang4
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2025-06-19T14:42:08+00:00 2025-07-03T00:00:26+00:00Comment
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