Under Section 80TTA / 80TTB ITA 1961, INTEREST income on SAVINGS BANK accounts is deductible:
Answer & Solution
Correct answer: C.
1. Section 80TTA Income Tax Act 1961 (inserted by Finance Act 2012): deduction for interest on SAVINGS BANK deposits up to Rs 10,000 — for non-senior citizens.
2. Section 80TTB Income Tax Act 1961 (inserted by Finance Act 2018): deduction for SENIOR CITIZENS (60+ years) on interest from deposits with banks, post offices, cooperative societies — up to Rs 50,000.
3. SENIOR CITIZENS cannot claim 80TTA (only 80TTB applies); non-senior citizens can claim only 80TTA.
4. Senior citizens get higher relief due to retirement income reliance on deposit interest.
5. Hence option B is correct.
_Source: CS Executive Paper 4 Tax Laws (ICSI BoS) + Income Tax Act 1961 + CGST Act 2017 — Income Tax Act 1961, Sections 80TTA and 80TTB_
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