Is standard deduction applicable to pensioners? Answers to your personal finance queries
A. Contribution to Atal Pension Yojana is deductible under Section 80CCD(1B) of Income Tax Act, 1961. It is treated on par with NPS. This section provides for deduction of up to ₹50,000 over and above the overall limit of ₹1,50,000. provided under Section 80CCE.
Q. I am a bank pensioner and senior citizen. I have deposited some funds with banks. Kindly guide me on the following: 2. How do I claim exemption under Section 80TTB?
A. Standard deduction is available for pension received from your old employer to the extent of ₹50,000 per year.
Deduction under Section 80TTB is allowed for all senior citizens up to a limit of ₹50,000 per year for interest received from the funds deposited in banks, post office schemes and co-operative societies engaged in the functions of bank.
Section 80TTB deduction benefits can be claimed from the respective ITR under deductions under Chapter VIA. You may enter the appropriate deduction amount based on your interest income subject to a limit of ₹50,000.
Q. I am a senior citizen with only interest income. However an amount of ₹1,500 is credited to my bank account every month by LIC P&GS Department, being my employers’ In addition, I receive an annuity of ₹830 per month from LIC Jeevan Suraksha Policy. I am including these receipts in my income tax return. The question is am I eligible for standard deduction of ₹50,000? Two, my wife, being a Central government retiree, has opted for CGHS ...
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