The Income-tax Act treats people over 60 differently in a dozen small ways - a higher exemption limit in the old regime, a bigger deduction for interest, a bigger one for health insurance, no advance tax, higher TDS thresholds, and for the over-75s a route to skip filing altogether. Individually each is modest; together they change the arithmetic of retirement income. This guide collects all of them, then does the calculation most retirees actually need: whether the old regime's senior-citizen concessions beat the new regime's ₹12 lakh zero-tax band. For most, since 2025, they do not.
Who counts as a senior citizen for tax
- Senior citizen: a resident individual who is 60 or over at any point during the financial year. Someone turning 60 on 31 March 2027 is a senior citizen for the whole of FY 2026-27.
- Super senior citizen: 80 or over during the year.
- Non-residents over 60 get none of the age-based benefits - the higher exemption, 80TTB and 80D limits, and the advance-tax exemption all require residency.
The slabs: where age matters and where it does not
Age changes the old regime only. The new regime has one set of slabs for everyone, and its ₹12 lakh rebate does not depend on age.
| Taxable income | Old regime, under 60 | Old regime, 60-79 | Old regime, 80+ | New regime, any age |
|---|---|---|---|---|
| Up to ₹2,50,000 | Nil | Nil | Nil | Nil (up to ₹4L) |
| ₹2,50,001 – ₹3,00,000 | 5% | Nil | Nil | Nil |
| ₹3,00,001 – ₹5,00,000 | 5% | 5% | Nil | 5% above ₹4L |
| ₹5,00,001 – ₹10,00,000 | 20% | 20% | 20% | 5% to ₹8L, 10% to ₹12L |
| Above ₹10,00,000 | 30% | 30% | 30% | 15% to ₹16L … 30% above ₹24L |
| Zero-tax ceiling (with 87A rebate) | ₹5,00,000 | ₹5,00,000 | ₹5,00,000 | ₹12,00,000 |
The old regime's ₹3 lakh and ₹5 lakh exemptions were meaningful when the new regime's rebate stopped at ₹7 lakh. Against a ₹12 lakh rebate they are not: a super senior's ₹5 lakh exemption is still ₹7 lakh short of what the new regime gives everyone.
Pension, family pension and the standard deduction
- Pension from a former employer is salary income and gets the standard deduction - ₹75,000 in the new regime, ₹50,000 in the old. So a pensioner's zero-tax ceiling under the new regime is ₹12.75 lakh of pension.
- Commuted pension (a lump sum in exchange for part of the monthly pension) is fully exempt for government employees; for others, one-third is exempt if gratuity was also received, otherwise one-half.
- Family pension - received by a spouse or child after the pensioner's death - is "income from other sources". The deduction is one-third of the pension or ₹25,000 in the new regime (₹15,000 old), whichever is lower. No standard deduction.
- EPF pension (EPS) is taxed as salary like any other pension. NPS annuity income is taxed at slab. Reverse mortgage instalments from a bank are not income at all.
The deductions with higher senior-citizen limits (old regime)
| Section | What | Under 60 | 60 and over |
|---|---|---|---|
| 80TTB (replaces 80TTA) | Interest from savings accounts, FDs, RDs, post office | ₹10,000 (savings only) | ₹50,000 (all deposits) |
| 80D | Health insurance premium, or medical expenses if uninsured | ₹25,000 | ₹50,000 |
| 80DDB | Treatment of specified serious illnesses (cancer, kidney failure, Parkinson's, etc.) | ₹40,000 | ₹1,00,000 |
| 80C | Includes the Senior Citizen Savings Scheme (SCSS) deposit | ₹1,50,000 | ₹1,50,000 |
All of these are old-regime only. The 80D medical-expenses route matters for retirees who cannot get insurance: up to ₹50,000 of hospital, medicine and consultation bills paid by non-cash mode qualify when the person has no health cover. Children who pay for an uninsured parent's treatment claim it in their own return - see the 80D guide.
TDS, Form 15H and advance tax: the procedural reliefs
- Interest TDS threshold of ₹1 lakh. Since 1 April 2025, banks deduct TDS on a senior citizen's interest only when it exceeds ₹1,00,000 in the year per bank (₹50,000 for everyone else). Below that, nothing is withheld.
- Form 15H. A senior citizen whose total tax for the year will be nil can file Form 15H with each bank to stop TDS entirely, whatever the interest amount. Under the new regime's ₹12 lakh rebate, a retiree with ₹9 lakh of pension and interest qualifies. File it in April, and again for each new deposit.
- No advance tax (Section 207) for a resident senior citizen with no business or professional income. However large the interest or capital gains, the tax is paid with the return, with no 234B or 234C interest. Rental income, pension, interest and capital gains all qualify for the exemption; consulting income after retirement does not.
- Paper returns are still permitted for super seniors (80+) filing ITR-1 or ITR-4.
Section 194P: over 75 with only pension and interest
A resident aged 75 or over whose only income is pension plus interest from the same bank that pays the pension can skip filing a return. The conditions:
- The bank is a "specified bank" notified for the scheme (all major public and private banks are).
- The pension and the interest are both received in that bank.
- You submit a declaration (Form 12BBA) to the bank with details of deductions you want to claim and your chosen regime.
The bank then computes the tax after the standard deduction, Chapter VI-A deductions and the 87A rebate, deducts it as TDS, and the return is deemed filed. Income from a second bank, rent, or capital gains disqualifies you - in which case the normal ITR applies, though it is a short one.
Old vs new regime: three retiree examples
Every example assumes the old regime uses the senior 80TTB automatically and, where noted, ₹1.5 lakh of 80C (SCSS) and ₹50,000 of 80D.
| Retiree | Income | New regime | Old regime, no investments | Old regime + 80C ₹1.5L + 80D ₹50k |
|---|---|---|---|---|
| A, 66, ex-PSU | Pension ₹6 lakh + FD interest ₹3 lakh | ₹0 | ₹72,800 | ₹31,200 |
| B, 72, no pension | FD and SCSS interest ₹8 lakh | ₹0 | ₹62,400 | ₹20,800 |
| C, 83, ex-banker | Pension ₹12 lakh + interest ₹5 lakh | ₹1,30,000 | ₹2,91,200 | ₹2,28,800 |
In all three the new regime wins - by ₹20,000-₹1 lakh even against a fully invested old regime. The old regime's senior concessions add up to perhaps ₹3 lakh of extra exemptions and deductions; the new regime's rebate is worth ₹7 lakh more than the old one's. The exceptions are rare: a retiree with a let-out property carrying a large loan (the ₹2 lakh set-off exists only in the old regime), or one paying rent with no HRA and claiming 80GG. Everyone else should file under the new regime and stop buying tax-saver instruments they do not otherwise want.
One practical consequence for retiree A: with zero tax due, the bank's TDS on ₹3 lakh of interest (₹30,000 at 10%, since it exceeds the ₹1 lakh threshold) is pure refund. Filing Form 15H in April stops it being deducted at all.
Choose your age group in the calculator - it applies the senior-citizen exemption and 80TTB in the old regime and compares with the new regime automatically.
Calculate as a senior citizen →Frequently asked questions
What is the income tax exemption limit for senior citizens in FY 2026-27?
In the old regime, ₹3 lakh for those aged 60-79 and ₹5 lakh for 80 and over. In the new regime there is no age-based limit - ₹4 lakh for everyone - but the Section 87A rebate makes taxable income up to ₹12 lakh tax-free regardless of age.
Which regime is better for senior citizens?
For most retirees, the new regime. Its ₹12 lakh zero-tax band outweighs the old regime's higher exemption, 80TTB and senior 80D limits combined. The old regime can still win with a large let-out property loss or a very high level of deductions - run both in the calculator.
Do senior citizens have to pay advance tax?
No, if they are resident and have no income from business or profession. Tax on pension, interest, rent and capital gains is paid with the return, without 234B/234C interest.
What is the TDS limit on FD interest for senior citizens?
₹1,00,000 a year per bank from FY 2025-26 (raised from ₹50,000 by Budget 2025). Form 15H stops TDS entirely if your total tax for the year will be nil.
What is Section 80TTB?
An old-regime deduction of up to ₹50,000 for resident senior citizens on interest from savings accounts, fixed deposits, recurring deposits and post office deposits. It replaces the ₹10,000 80TTA available to those under 60.
Do super senior citizens (80+) need to file ITR?
Yes if their income exceeds the exemption limit, with two reliefs: they may file on paper, and if they are 75 or over with only pension and interest from one specified bank, Section 194P lets the bank deduct the tax and no return is needed.
Is pension taxable for senior citizens?
Yes, as salary, after the standard deduction of ₹75,000 (new regime) or ₹50,000 (old). Commuted pension is partly or fully exempt. Family pension is taxed as other income with a deduction of one-third or ₹25,000 (new regime).