80TTB Deduction for Senior Citizens: What’s It About?

If you're 60+ and earn interest income from your bank or post-office deposits, you’re eligible for a handy tax break under Section 80TTB. It’s designed to ease the burden on senior citizens who live off interest income after retirement.

Who Can Claim 80TTB?

• You are an Indian resident and your age is 60 years or more during the financial year.
• The interest comes from eligible sources like savings accounts, fixed or recurring deposits, or post-office deposits.
• It doesn’t apply to firms or associations holding those deposits. 

Also note: if you use the new tax regime, this deduction may not be available. 

What’s the 80TTB Deduction Limit?

If you’re eligible under Section 80TTB, you can claim up to ₹ 50,000 in a year. 
Here’s how it works:

In short, you can deduct up to ₹50,000 — whichever is lower between your interest income and ₹50K. 

Example of How 80TTB Works -

Meet Mrs. Sunita, age 67, living in Pune. She gets:
₹ 28,000 interest from her savings account, plus
₹ 35,000 from fixed-deposit interest

Her total = ₹ 63,000 interest income in the year.

Under Section 80TTB, she can claim ₹ 50,000 as a deduction. The remaining ₹ 13,000 gets taxed as normal income.

This simple step reduces her taxable income without extra paperwork—just by applying 80TTB correctly.

Things to Watch Out For

• You must be 60+ and a resident individual.
• It covers eligible deposits only — bank / post-office savings or fixed / recurring deposits.
• If you opt for the new tax regime, you may lose access to this deduction.
• Senior citizens cannot claim Section 80TTA if they are using 80TTB — these are mutually exclusive. 

Conclusion

For senior citizens, Section 80TTB gives you a meaningful tax deduction on your interest income — up to ₹ 50,000 per year. If you qualify, be sure to report your interest under “Income from Other Sources” and apply this deduction while filing your return. It’s a simple, effective way to lower your tax load and stretch your retirement income a little further.