Protecting retirement income
For most retirees, interest from fixed deposits and savings accounts is the main income. To protect it, the Old Regime offers a special deduction under Section 80TTB for senior citizens — people aged 60 or above at any time in the year.
The number
Section 80TTB allows senior citizens up to ₹50,000 deduction on interest income, versus just ₹10,000 under 80TTA for others (Source: Sections 80TTB and 80TTA, Income Tax Act).
| Who | Section | Deduction | Covers |
|---|---|---|---|
| Senior (60+) | 80TTB | ₹50,000 | Savings + FD + RD interest |
| Below 60 | 80TTA | ₹10,000 | Savings interest only |
What interest qualifies
Under 80TTB you can claim interest from:
- Bank savings accounts
- Bank fixed deposits (FDs) and recurring deposits (RDs)
- Post office deposits (such as SCSS or post office FDs)
- Cooperative society deposits
Interest from company fixed deposits or bonds does not qualify.
80TTA vs 80TTB
Those below 60 use 80TTA: only ₹10,000, and only on savings-account interest. At 60 you upgrade to 80TTB: ₹50,000 across all bank deposits. You cannot claim both.
How to report it: step by step
- Declare all interest income under "Income from Other Sources".
- Claim the ₹50,000 deduction under Section 80TTB in the deductions schedule.
- Claim TDS credit separately for any tax the bank deducted.
What you should do
- Collect interest certificates from every bank and post office.
- Report gross interest first, then deduct ₹50,000.
- Match TDS to your AIS so you claim the right credit.
Common mistake
Hiding interest because TDS was already cut. You must still report the gross interest, claim 80TTB, and then claim the TDS credit — otherwise the AIS will not match your return.
How LastMinute ITR helps
This report-then-deduct-then-credit flow trips up many families. LastMinute ITR walks through it, places 80TTB in your deductions, and compares old vs new regime, which usually favours the old regime for retirees. You file and e-verify on incometax.gov.in.