Section 80TTB Senior Citizen Tax Calculator

₹50,000 FD & Savings Interest Exemption · Senior Citizens (60+) · FY 2026-27

Calculate exact tax deduction under Section 80TTB for resident senior citizens on bank FD, RD, and savings account interest income.

✓ Max ₹50,000 Exemption ✓ Form 15H TDS Check

👴 Senior Citizen Interest Income

Section 80TTB Allowed Deduction

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Estimated Tax Saved: ₹—

Interest & Tax Breakdown

Total Eligible Interest Income—
Tax-Free Interest (Sec 80TTB)—
Taxable Interest Balance—
Form 15H Submission Eligibility —

Section 80TTB Senior Citizen Tax Deduction Guide

What is Section 80TTB?

Introduced in Budget 2018, Section 80TTB provides a dedicated tax relief to resident senior citizens (aged 60 and above) by allowing up to ₹50,000 deduction on interest income from savings accounts, fixed deposits (FD), and recurring deposits (RD) under the Old Tax Regime.

Section 80TTB vs Section 80TTA Comparison

Section 80TTA applies to non-senior citizens and caps interest deduction at ₹10,000 (excluding FD interest). Section 80TTB grants senior citizens 5x higher limit (₹50,000) and includes FD & RD interest.

💡 Pro Hack: Submit Form 15H

Senior citizens whose total annual income falls below the basic exemption threshold (₹3 Lakhs for 60-79 yrs, ₹5 Lakhs for 80+ yrs) should submit Form 15H to banks in April to prevent 10% TDS deduction.

⚡ ₹50,000 TDS Threshold

Under Section 194A, banks cannot deduct TDS on interest paid to senior citizens unless total interest from that bank exceeds ₹50,000 in a financial year.

🛡️ SCSS & Post Office Coverage

Interest earned from Senior Citizen Savings Scheme (SCSS @ 8.2%), Post Office Monthly Income Scheme (POMIS), and Post Office FDs is 100% eligible under Section 80TTB.

Section 80TTA vs Section 80TTB Reference Table

Parameter Section 80TTA Section 80TTB
Eligible Investor CategoryIndividuals below 60 years & HUFsResident Senior Citizens (60+)
Maximum Deduction Limit₹10,000 per year₹50,000 per year
Savings Account Interest✓ Allowed✓ Allowed
FD & RD Interest Included?✗ Excluded✓ Allowed (FD + RD)
TDS Exemption Threshold₹40,000 per bank₹50,000 per bank

⚠️ 3 Common Senior Citizen Tax Mistakes

  • • Claiming Both 80TTA and 80TTB: Senior citizens claiming 80TTB cannot simultaneously claim 80TTA. Section 80TTB replaces 80TTA for senior citizens.
  • • Choosing New Tax Regime Unwittingly: Switching to the New Tax Regime forfeits your ₹50,000 Section 80TTB deduction. Always compare net tax liability in both regimes.
  • • Including Corporate FD Interest: Interest from non-banking company FDs or NCDs is not covered by Section 80TTB.

Frequently Asked Questions

What is Section 80TTB of the Income Tax Act?
Section 80TTB allows resident senior citizens (aged 60 years or above) to claim a tax deduction of up to ₹50,000 per financial year on interest income earned from savings accounts, fixed deposits (FD), and recurring deposits (RD) with banks, post offices, and co-operative banks.
What is the difference between Section 80TTA and 80TTB?
Section 80TTA applies to individuals below 60 years and caps savings account interest deduction at ₹10,000 (FD interest excluded). Section 80TTB applies exclusively to senior citizens (60+) and caps interest deduction at ₹50,000 covering both savings account AND fixed/recurring deposit interest.
Is Section 80TTB available under the New Tax Regime?
No. Section 80TTB deduction is available only under the Old Tax Regime. Under the New Tax Regime (Section 115BAC), 80TTB and 80TTA deductions are not available.
What is the TDS threshold for Senior Citizens on FD interest?
Under Section 194A, banks do not deduct TDS on FD interest paid to senior citizens unless the interest income exceeds ₹50,000 in a financial year (compared to ₹40,000 for non-seniors).
Can senior citizens submit Form 15H to avoid TDS?
Yes! If a senior citizen's estimated total tax liability for the financial year is NIL, they can submit Form 15H to the bank at the start of the year so that zero TDS is deducted.
Does Section 80TTB cover Company Fixed Deposits or NCDs?
No. Section 80TTB covers interest from scheduled commercial banks, post offices, and co-operative banks. Interest from corporate FDs, bonds, or non-convertible debentures (NCDs) is not eligible.
Can super senior citizens (aged 80+) claim 80TTB?
Yes. Both senior citizens (aged 60-79) and super senior citizens (aged 80+) are eligible for the maximum ₹50,000 Section 80TTB deduction under the Old Tax Regime.
What happens if total interest income exceeds ₹50,000?
The first ₹50,000 of eligible interest is fully tax-exempt under Section 80TTB. Any interest amount earned above ₹50,000 is added to taxable income and taxed at the senior citizen's income slab rate.

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