What Is Section 80TTB?

Section 80TTB is a deduction under the Income Tax Act that allows senior citizens to reduce interest income from savings and deposit accounts. This includes interest earned on bank deposits, fixed/recurring deposits, and post-office accounts. 

The maximum deduction allowed is ₹ 50,000 in a financial year. 

Can You Claim Section 80TTB Under the New Tax Regime?

Short answer: No — 80TTB is not available if you file under the new tax regime. 

Under Section 115BAC (which defines the new default tax regime), certain deductions — including 80TTB — are disallowed for taxpayers who choose this regime. 

That means, if you pick the new tax regime instead of the old regime, you lose access to this deduction for interest income.

Who Qualifies for 80TTB (Old Regime Only)?

Here’s who can use Section 80TTB — as long as you file under the old tax regime:

• You’re a resident senior citizen (aged 60 years or more). 
• You have interest income from savings or deposits with banks, co-operative banks, or post office accounts. 
• Total of eligible interest income (from those sources) is included under your Income from Other Sources — then you claim up to ₹ 50,000 as deduction. 

If you choose the old regime, this can significantly reduce your taxable income if you rely on interest income (for example, from fixed deposits or recurring deposits).

How 80TTB It Impacts Your Tax?

Meera, a 62-year-old retired teacher, earns ₹40,000 as interest from her savings and fixed deposits in a year.

Under the old tax regime, she can claim a ₹40,000 deduction under Section 80TTB (since it’s within the ₹50,000 limit). This means her entire interest income becomes tax-free.

If she chooses the new tax regime, she cannot claim this deduction. The full ₹40,000 will be taxed as part of her total income.

Making that choice (old vs new regime) can impact how much tax he ends up paying.

Conclusion

Section 80TTB helps senior citizens reduce tax on interest income — up to ₹ 50,000. But it’s only valid under the old tax regime. It is not allowed in the new tax regime (115BAC). If you’re a senior citizen with interest income, compare both regimes before filing your ITR.