Senior citizens: How to get tax deduction of up to Rs 50,000 on income from FD, savings a/c, post office schemes

Section 80TTB​ allows a deduction to taxpayers from the interest income earned from any bank deposits, including fixed deposits.

A senior citizen, deriving income like interest on bank deposits is allowed to claim deduction under Section 80TTB of the Income-tax Act.

Senior citizen means a resident individual whose age is 60 years or more at any time during the previous year. This deduction is available to only those senior citizens who are residents of India.

An assessee can claim a deduction under section 80TTB​ in respect of the interest earned on deposits (including fixed deposits) held with the following:
a) A banking company including any bank or banking institution;
b) A co-operative society engaged in banking business (including co-operative land mortgage bank or co-operative land development bank); or
c) A post office

The assessee can claim a deduction of an amount equal to interest credited to his account or Rs 50,000, whichever is lower.

You can claim a deduction ​under Section 80TTB if you have opted for the old income tax regime. This deduction is not available under the new income tax regime or alternative tax regime under section 115BAC.