SECTION 80TTA VS 80TTB

Section 80TTA

Section 80TTA provides a deduction on Income earned from Savings Account.

Applicability

1.Individual

2.HUF

Limit

Maximum Deduction allowed is Rs. 10,000/-. It is not applicable on Interest earned from Fixed Deposit, Recurring deposit and any other Time Deposit.

If the interest earned during the year is less than 10,000/- the whole of the income will be allowed as deduction, if the income is more than 10,000, deduction will be limited to Rs. 10,000/- only.

Section 80TTB

Section 80TTB provides a deduction on Income earned from Deposits.

Applicability

It is applicable to resident Senior citizen (Aged 60 years and above) only.

Here, the meaning of senior citizen is an individual resident in India who is of the age of 60 Yrs or more at any time during the relevant financial year.

Limit

Maximum Deduction allowed under this Section is Rs. 50,000/- only. It is applicable on Interest earned on bank Deposits either fixed or savings and interest earned on post office Deposits.

If the interest earned during the year is less than 50,000/- the whole of the income will be allowed as deduction, if the income is more than 50,000, deduction will be limited to Rs. 50,000/- only.