This section is inserted in budget 2018 and is applicable from financial year 2018-19.
When a senior citizen receives interest on deposits with
- a bank
- a co-operative bank
- a post office
then he is allowed a deduction of such interest up to maximum limit of Rs. 50,000. Also note that deduction is allowed on interest received from any type of deposit not just saving account’s interest as in case of section 80TTA.
“Senior citizen” means an individual resident in India who is of the age of sixty years or more at any time during the relevant year.
If the interest is received on deposit held on behalf of firm, AOP or BOI then no deduction is allowed under this section.