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Section 80TTB of Income Tax Act

08 November 2020

Is interest earned in a Financial year on a FIXED DEPOSIT (invested for less than 5 years eg. 1 year Term deposit) also eligible for exemption under the subjected section?

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11 Replies

prasad Nilugal (3914 Points)
Replied 08 November 2020

This section is applicable to only senior Citizen Individual resident who's age is 60 or more than 60 year's during the relevant previous year
Interest earned on fixed deposits in. Bank , Co-op society and post office up to 50000/- is exampt .

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Shiva Shillong (10 Points)
Replied 08 November 2020

Please read my question again and answer accordingly.
My question is if the FD is invested for less than 5 years by a senior citizen will he be eligible for this exemption? Doubt raises because under 80 C less than 5 years invested FD isn't eligible.

prasad Nilugal (3914 Points)
Replied 08 November 2020

If you read section 80TTB of the Income act 1961 carefully , no clause as such of 80c , further I have already mentioned amount should be invested in Bank , co op society , post office .

prasad Nilugal ( GST Practitioner & Accounts ) (14811 Points)
Replied 08 November 2020

If you have any doubt ( section 80TTB of the Income Tax act ) , you please confirm with others also .

jacinthamary (accountant) (874 Points)
Replied 08 November 2020

Both sec 80c and 80TTB are different. As you have said FDs below five years not eligible for sec 80C. But here your query is regarding 80TTB. For 80TTB any interest income from fixed or savings from a recognised bank, post offices is exempt with a ceiling limit of 50000/-. To claim this the assesse should be a senior citizen and income should be earned from interest from savings account and or FD.

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JATINDER KUMAR (Accountant) (3662 Points)
Replied 08 November 2020

Yes, you can claim

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ayusmita (Tax consultant) (5885 Points)
Replied 09 November 2020

If a fixed deposit or term deposits you can claim Deduction upto 10000 in overall all interest income if you are not senior citizen and 50000 if you are senior citizen and above as per 80TTB
now Deduction as per 80 c is applicable only for tax saving fd which are mainly for 3 yrs or 5yrs

JATINDER KUMAR (Accountant) (3662 Points)
Replied 09 November 2020

@ Ayusmita

Under section 80TTA deduction allowed Rs. 10000 for interest earned from only savings bank accounts not for interest from fixed deposits

Under section 80TTB deduction allowed Rs. 50000 for interest earned by senior citizen from Fixed Deposits

Under Section 80C deduction allowed only 5 year's tax savings FDR