80ttb discount 50000 eleigibility criteria ?

ITR 222 views 7 replies

herbsandchilli Trading

81 Points Joined February 2018

Senoir citizen (born July 1959 ) with income from other sources (all from bank FD /SB interest) close to Rs 685,000.

Already opened SCSS in Dec2019 for Rs 150000.

On Checking in 2 Tax calculators available in market none is applying the 80TTB reduction of Rs 50k .

I dont have any othe eligible reductions like NPS ,Medical insurance etc.

Bringing the the income below Rs 5 lakh will make me eligible for 87A discount. but calculator is not applying the 80TTB Rs 50k & showing taxable income 685000 less 80c Rs 150000 equal 535000 and showing tax due around 2oooo+

What Iam missing ? (I have given the exact dob in calculator )

I could buy medical insurance or make a payment in NPS say up to Rs 50,000 if I feel I can push y income below 5 lakhs & pay no tax.

Replies (7)

Roshni

Studwnt

1141 Points Joined February 2016

It is for which year? because you might have not reached 60.

herbsandchilli Trading

81 Points Joined February 2018

Originally posted by : Roshni
	It is for which year? because you might have not reached 60.

for this coming year FY2019-20 {AY2020-21} &my dob is july 1959 (60 years completed on july2019)

Roshni

Studwnt

1141 Points Joined February 2016

You are eligible for 50k deduction. NEED NOT worry

Kapadia Pravin

17264 Points Joined December 2018

Which calculator you used ?
Download Financial Calculator App.
You will get income becoming below 5 lakhs

herbsandchilli Trading

81 Points Joined February 2018

Originally posted by : Kapadia Pravin

Which calculator you used ?Download Financial Calculator App.You will get income becoming below 5 lakhs

Pravin ! you are right . I used 2 private calculators.

Now I downloaded calcualtor in IT web site .

https://www.incometaxindia.gov.in/Pages/tools/income-tax-calculator-234ABC.aspx

Now it is showing 80TTB deduction column & including the 50k int income claim & reducing the net income to just below Rs 5 lakh . (hence no tax)

However under deductions list : 5 year PO/Bank deposit is mentioned but not SCSS .

So i added the 150,000 investment in SCSS in " Any other deductable under 80C " column. The calculator after deducting Rs 200000 bringing my income just below Rs 5 lakhs.

Thanks a lot .

Kapadia Pravin

17264 Points Joined December 2018

That's right. SCSS deposit is in 80C. [ Subject to overall limit of 1.50 lakhs ]

herbsandchilli Trading

81 Points Joined February 2018

Originally posted by : Kapadia Pravin
	That's right. SCSS deposit is in 80C. [ Subject to overall limit of 1.50 lakhs ]

I have no regular payments to LIC, house loan , NPS , medical claims etc. This year Fy2019-20 I made SCSS- FD (5 years) for the 1st time & will be availing 1.5 lakhs under 80c + 50k under 80TTB. (hopefully net income till Mar31st 2020 (after 2 lakh deduction) will go below 5 lakhs to be eligible for 87A discount) Next year on a income of Rs 7.5 lakh , I will file under the new scheme ---I wont avail any 80c or any other discount (other than 80TTB 50k for seniors if eleigible ) & will pay 10% on income between 5-7.5 lakh. No need to make any fresh investment blocking money . For tax payers with existing home loan, kid tution, parents medical bills, medical insurance, LIC /NPS yearly payments committed - old scheme is far better.Over all this budget is a eye wash but administration/compliance easier from FY2020-21