Form No. 15 G. Whether deductions available Under Chapter VI A to be accounted for?

Respected Sir / Madam,  It is a good article you have written with respect to Form No. 15 G to be submitted by SENIOR CITIZENS and I am sure the same will benefit many.  Only crucial point is that the Form No. 15 H as quoted by you in the article says that "Income computed in accordance with the provisions of the Income-tax Act".  This obviously means that the Income arrived at after reducing the amounts of deductions available Under Chapter VI A of the Act. But, simultaneously, the article also quotes in the same Form No. 15 H that " and the interest paid or payable to you does not exceed the maximum amount which is not chargeable to tax.".  Here lies the contradiction.  A person may have Interest on deposits amounting to Rs.5,00,000 and is entitled deduction Under Sec 80C of Rs.1,50,000, Under Sec 80 D of Rs.30,000 and Under Sec 80 TTB of Rs.50,000. Under such circumstances, the Senior Citizen is not liable to pay Income-tax and the Bank has to accept the Form No. 15 G even though the interest component is Rs.5,00,000.  Can you please be kind enough to clarify on this point. With regards,   Jagadeesh Bharadwaj.