Hi Mr Hardik,
For senior citizens if they receive any interest on FD or saving , is that interest amount is taxable?
Krishan
Ans: Hello Krishan,
Yes, the interest earned on Fixed Deposits (FDs) and savings accounts is indeed taxable. However, there are certain provisions in the Income Tax Act that provide some relief to senior citizens.
As per Section 80TTB of the Income Tax Act, senior citizens, those who are 60 years or above, can claim a deduction of up to Rs 50,000 from their gross total income. This deduction is applicable on the interest earned from FDs, savings accounts, and recurring deposits.
So, if the total interest income earned by a senior citizen in a financial year does not exceed Rs 50,000, then it will not be subject to tax. However, if the interest income exceeds Rs 50,000, then the amount over Rs 50,000 will be taxable.
I hope this clarifies your query.
Best Regards,
Hardik