Kindly let me know whether Normal Citizens - Female below 60 Years of age are eligible to claim Standard Deduction of Rs.40000/- from Interest Income i.e. Other Sources of Income.
Ans: Assuming you are opting for old tax regime, you can claim standard deduction of Rs. 50,000 (increased from Fy 2019-20) for Salary income. This deduction is not available for income under any other head.
If any of your interest income is from Savings Bank interest, you can claim a deduction of Rs.10,000 under Section 80TTA. If savings bank interest income is less then Rs.10K, the entire interest will be your deduction. If your interest income is more than Rs.10K, your deduction is limited to Rs.1oK.