Under Section 80TTA / 80TTB ITA 1961, INTEREST income on SAVINGS BANK accounts is deductible:
ARs 50,000 universally (cf. Income Tax Act 1961, Sections 80TTA and 80TTB) (cf. Income Tax Act 1961, Sections 80TTA and 80TTB) (cf. Income Tax Act 1961, Sections 80TTA and 80TTB)
BRs 25,000 only (cf. Income Tax Act 1961, Sections 80TTA and 80TTB) (cf. Income Tax Act 1961, Sections 80TTA and 80TTB) (cf. Income Tax Act 1961, Sections 80TTA and 80TTB)
CSection 80TTA — INTEREST on savings bank deposits up to Rs 10,000 for non-senior citizens; Section 80TTB — interest on deposits up to Rs 50,000 for SENIOR CITIZENS (60+ years)
Dno deduction (cf. Income Tax Act 1961, Sections 80TTA and 80TTB) (cf. Income Tax Act 1961, Sections 80TTA and 80TTB) (cf. Income Tax Act 1961, Sections 80TTA and 80TTB)
Answer & Solution
Correct answer: C. Section 80TTA — INTEREST on savings bank deposits up to Rs 10,000 for non-senior citizens; Section 80TTB — interest on deposits up to Rs 50,000 for SENIOR CITIZENS (60+ years)
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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