What is Section 80TTB of Income Tax Act?
What is Section 80TTB of Income Tax Act?
Kanishka Feb. 02, 2018
- Interest exemption increased from Rs 10,000 to Rs 50,000. Benefit of existing Rs 10,000 is included in this new limit of Rs 50,000
- This increase in exemption provision has been introduced vide new section 80TTB.
- So in case of senior citizens, what will apply will be section 80TTB but not section 80TTA(Rs 10,000 deduction).
- Consequently amendment has also been made in Section 194A increasing the threshold limit for deduction of TDS. Now Banks/Post Offices will deduct TDS of senior citizens only when interest to be paid will exceed Rs 50,000.
- Another sight of relief for senior citizens will be that now less submissions of Form 15-H will be made by them. Banks paperwork regarding collection and then further intimation to income tax department will also reduce.
- The point of concern which remains is will this increased exemption be applicable for super senior citizens also? In memorandum also, expression used in "senior citizens" but not "senior citizens & super senior citizens”.
