Is 80TTB Applicable in New Tax Regime?

As a senior citizen if you are looking at your tax options, you might be wondering if the 80TTB is still applicable under the new tax regime.  The simple and straightforward response is no.  The new tax regime (Section 115BAC) restricts deductions under Section 80TTB. 

 Let's discuss in more detail how that affects your tax return.

What Does Section 80TTB Cover?

Section 80TTB allows seniors to deduct interest income. That includes interest on fixed deposits, recurring deposits with banks or post offices, and interest on savings accounts. You could deduct up to ₹50,000 per year under the previous tax system.

New Tax Regime and 80TTB

Under the new tax regime (section 115BAC), many deductions are disallowed. That includes Section 80TTB. 

Therefore, you will not be able to claim that ₹50,000 interest-income deduction if you choose to use the new slabs in your ITR.  Taxpayers who use the old-regime structure are the target of deductions like 80TTB.

What Should You Consider?

• Senior citizens aged 60+ Can claim up to ₹50,000 interest deduction under old tax regime, not under new.
• Those opting for new tax regime can not use 80TTB deduction—interest income will be fully taxable.
• Taxpayers assessing options Must weigh slab rates vs loss of deductions before choosing regime.

If you’re a senior citizen planning to file under the new tax regime, you’ll lose that deduction. But the new regime has lower tax rates. So your decision may depend on whether rate benefits outweigh losing deductions like 80TTB.

Here is an Example to Understand 80TTB- 

Imagine Mr. Gupta, age 65, earns ₹ 45,000 in interest from FD & savings in a financial year.

Under the old tax regime, he can claim deduction up to ₹ 45,000 (since it's under the ₹ 50,000 limit) using Section 80TTB.

If he switches to the new tax regime, he cannot claim 80TTB. So that ₹ 45,000 interest becomes fully taxable.

This could increase his tax net slightly, depending on his total income and slab rates.

Conclusion

So to answer the question: No, Section 80TTB is not applicable in the new tax regime. If you're a senior citizen and want to use 80TTB, you'll need to file under the old tax regime. Always compare your taxable liabilities under both regimes before making your choice.

Let me know if you’d like me to draft a version with a side-by-side comparison of tax impact under the old vs new regime (for senior citizens).