Every rupee of eligible deduction reduces the income on which you pay tax. Section 80TTB of the Income-tax Act, 1961 is one such provision, and using it correctly can meaningfully lower your tax bill.
This guide explains Section 80TTB in plain language — the deduction limit, who can claim it, what is covered, the documents to keep, and the exact steps to claim it in your ITR.
What is 80TTB?
Section 80TTB gives resident senior citizens (aged 60+) a deduction of up to ₹50,000 on interest income from savings accounts, fixed deposits and recurring deposits.
How much can you claim?
Up to ₹50,000 per year on eligible interest income.
Who is eligible
- Resident individuals aged 60 years or above.
- Available under the old regime.
What is covered
- Interest from savings accounts, fixed deposits and recurring deposits with banks, co-operative banks and post offices.
Documents and proof to keep
- Bank/post office interest certificates.
Retain these documents even though they are not attached to the return — the tax department can ask for them during processing or assessment.
FD-heavy portfolio
A 68-year-old earns ₹65,000 in FD interest. She deducts ₹50,000 under 80TTB, leaving ₹15,000 taxable.
Points to remember
- A senior citizen claiming 80TTB cannot also claim 80TTA.
How to claim it in your ITR
- Gather proof. Collect the certificates, receipts or statements listed above for the financial year.
- Choose the right regime. Opt for the old regime in your return, otherwise the deduction will not apply.
- Enter the amount. Report the eligible amount against Section 80TTB in the deductions schedule of your ITR on the income-tax e-filing portal.
- Verify and file. Cross-check against Form 26AS / AIS, then submit and e-verify the return within the prescribed time.
Frequently asked questions
Does 80TTB cover fixed deposit interest?
Yes. Unlike 80TTA, Section 80TTB covers FD and RD interest in addition to savings interest.