80TTB Deduction in New Tax Regime

If you’re a senior citizen wondering about 80TTB deduction in new tax regime, you’re asking an important question. Simply put: No, you cannot claim 80TTB under India’s new tax regime (Section 115BAC).

This means a deduction on interest income that’s available under the old regime no longer applies when you choose the new default slabs. 

Let’s unpack what that really means and why it matters.

What Is Section 80TTB?

Section 80TTB gives resident senior citizens (age 60+) an interest-income deduction. It covers interest on:

• Savings accounts
• Fixed deposits (FDs)
• Recurring / post-office deposits

Under the old tax regime, you can claim up to ₹ 50,000 per year against that interest income. 

Why It Doesn’t Apply Under the New Tax Regime

• The new tax regime under Section 115BAC removes many deductions and exemptions to simplify filing.
• Among them, the interest-income deduction under 80TTB is explicitly not available under new regime.
• So once you opt for new-tax regime slabs, you can’t use that ₹ 50,000 deduction, even if you’re a senior citizen.

Use Case

Imagine Mrs. Sharma, age 65, with interest income of ₹ 35,000 from fixed deposits and savings in a year.

• Under the old tax regime, she could deduct that full ₹ 35,000 (because it’s under the ₹ 50,000 limit via Section 80TTB).
• But under the new tax regime, that ₹ 35,000 becomes fully taxable — no deduction is available.

The choice of regime can change how much tax she pays.

Conclusion

If you’re a senior citizen with interest income and you’re considering which tax regime to use, know this: 80TTB deduction is not applicable in the new tax regime. Choosing old regime gives you that benefit, while new regime simplifies slabs but removes it. Compare both options carefully before filing.