A resident senior citizen who is 60 years of age or older at any point during a Financial Year (FY) may deduct a certain amount from his gross total income for that FY under Section 80TTB. This Section is in effect as of April 1, 2025.
Note: This deduction can still only be claimed under the old tax regime. If a taxpayer opts for the new default regime under Section 115BAC(1A), this deduction will not be available.
Under the unified provision from FY 2025–26 onwards, a deduction of up to ₹50,000 can be claimed for interest income on savings, fixed, and other eligible deposits for all individuals.
Interest on fixed or savings bank deposits.
Interest earned on deposits made with a co-operative organization that conducts banking, such as a co-operative bank for land development or mortgage.
Post office deposit interest.
If a partnership firm or any association of persons (AOP) or body of individuals (BOI) holds the deposits, individual partners or members cannot claim a deduction under Section 80TTB.
There is now a unified provision combining 80TTA and 80TTB. All individuals—including senior citizens—are eligible for a deduction of up to ₹50,000 on interest income from savings and fixed deposits, but only under the old tax regime.
Compared to regular taxpayers, senior citizens already benefit from a larger basic exemption ceiling. Thanks to the implementation of Section 80TTB, seniors can now save even more on taxes.
Using the following example, let's see how. Let's look at the following taxpayer incomes:
Savings interest of Rs 5,000
Interest on fixed deposits of Rs 2,00,000
Other income of Rs 1,50,000
Now, the following table will explain how the requirements of Section 80TTB will benefit a senior citizen (as opposed to a regular taxpayer).
Computation of Taxable Income
| Particulars | Non-Senior Citizen (Rs) | Senior Citizen (Rs) |
|---|---|---|
| Savings Interest | 5,000 | 5,000 |
| FD Interest | 2,00,000 | 2,00,000 |
| Other Income | 1,50,000 | 1,50,000 |
| Gross Total Income | 3,55,000 | 3,55,000 |
| Less: Deduction under Section 80TTA | 5,000 | N/A |
| Less: Deduction under Section 80TTB | N/A | 5,000 |
| Taxable Income | 3,50,000 | 3,05,000 |
A non-senior citizen in the aforementioned case is only eligible for a Rs 5,000 savings interest deduction under Section 80TTA. On the other hand, older citizens cannot deduct interest on fixed deposits and savings accounts up to Rs 50,000.
There are no unique conditions to qualify for Section 80TTB deductions. Your PAN, interest certificate, and bank statement are adequate for computing taxes.
By altering Section 80TTA, Section 80TTB is established specifically for older folks. It offers a substantial tax reduction for senior adults who invest largely in bank accounts and earn income from interest on their deposits.
From FY 2025–26 onward, this section is combined with Section 80TTA to form a single provision that applies to all taxpayers, providing a maximum deduction of ₹50,000 for interest income. The deduction still excludes other forms of interest, such as from corporate bonds or debentures.
Yes, under the merged provision, you can claim a deduction up to ₹50,000 for the combined interest income—only under the old tax regime.
You must file your income tax return in order to claim the deduction under Section 80TTB. Before claiming the Section 80TTB deduction, interest income from savings, recurring accounts, and deposits must first be reported in your income under the heading "Income from other sources."
Indeed, for AY 2025–2026, the Section 80TTB deduction is valid.
Yes, citizens over 60 are covered by this clause. Thus, both super senior citizens and senior citizens are included in this.
These sections have now been merged. So there is no distinction between claiming under one or the other—you claim under a single unified limit of ₹50,000.
No, deductions under the merged 80TTA/80TTB provision are only available under the old regime. The new tax regime does not allow these deductions.