Quick answer
– A senior citizen is a resident individual who is 60 years or older at any time during the financial year. A super senior is 80 years or older.
– In the new tax regime a senior can pay zero tax up to Rs 12 lakh of total income (rebate under Section 87A).
– In the old tax regime the exemption limit is Rs 3 lakh for ages 60-79 and Rs 5 lakh for 80+, plus deductions such as 80TTB (Rs 1 lakh) and 80D (Rs 50,000) that bring tax down further.
Income-tax slabs for senior citizens (FY 2025-26)
Old regime – age-based slabs
| Age group | Income | Tax rate |
|---|---|---|
| 60-79 years | Up to Rs 3,00,000 | Nil |
| 60-79 years | Rs 3,00,001 – Rs 5,00,000 | 5% |
| 60-79 years | Rs 5,00,001 – Rs 10,00,000 | 20% |
| 60-79 years | Above Rs 10,00,000 | 30% |
| 80+ years | Up to Rs 5,00,000 | Nil |
| 80+ years | Rs 5,00,001 – Rs 10,00,000 | 20% |
| 80+ years | Above Rs 10,00,000 | 30% |
Only the old regime uses age-based slabs.
New regime – same slabs for all ages
| Income range (Rs) | Tax rate |
|---|---|
| Up to 4,00,000 | Nil |
| 4,00,001 – 8,00,000 | 5% |
| 8,00,001 – 12,00,000 | 10% |
| 12,00,001 – 16,00,000 | 15% |
| 16,00,001 – 20,00,000 | 20% |
| 20,00,001 – 24,00,000 | 25% |
| Above 24,00,000 | 30% |
The new regime (Section 115BAC of the 1961 Act, now Section 202 of the Income-tax Act 2025) gives no higher exemption for seniors. The compensation is the Rs 60,000 rebate and the Rs 75,000 standard deduction.
New tax regime vs old tax regime for seniors
A worked example shows which option is cheaper for a typical pensioner.
Profile – 65-year-old, pension plus bank interest.
| Item | Amount (Rs) |
|---|---|
| Pension | 8,00,000 |
| Fixed-deposit interest | 3,00,000 |
| Savings-account interest | 20,000 |
| Total gross income | 11,20,000 |
New regime calculation
- Standard deduction – Rs 75,000. Taxable income = 11,20,000 – 75,000 = 10,45,000
- Tax: Rs 4,00,001 – 8,00,000 (4 L) at 5% = 20,000; Rs 8,00,001 – 10,45,000 (2,45,000) at 10% = 24,500. Tax before rebate = 44,500
- Rebate under Section 87A – up to Rs 12 lakh income, rebate Rs 60,000. It wipes out the Rs 44,500.
Tax payable = Rs 0
Old regime calculation
- Standard deduction – Rs 50,000
- Section 80TTB (interest on savings, FD, post-office deposits) – Rs 1,00,000
- Section 80D (health-insurance premium) – Rs 40,000
- Taxable income = 11,20,000 – 50,000 – 1,00,000 – 40,000 = 9,30,000
- Tax on Rs 9,30,000 (60-79 slab): Rs 3,00,001 – 5,00,000 (2 L) at 5% = 10,000; Rs 5,00,001 – 9,30,000 (4,30,000) at 20% = 86,000. Tax = 96,000
- Health and education cess at 4% = 3,840
Tax payable = Rs 99,840
For this pensioner the new regime wins by nearly Rs 1 lakh. The old regime is still worth checking when a senior has heavy deductions – large 80D premiums, big SCSS investments, or an HRA claim.
The five big senior-citizen deductions
| Deduction | Section | Limit | What it covers | Quick example |
|---|---|---|---|---|
| Interest on savings, FD, RD, post-office deposits | 80TTB (old regime only; Section 153 under the 2025 Act) | Rs 1,00,000 | All deposit interest a senior earns | Rs 80,000 interest earned – deduct the full Rs 80,000 |
| Health-insurance premium or medical expenses (if uninsured) | 80D (old regime only; Section 126 under the 2025 Act) | Rs 50,000 | Premium for self, spouse, or parents who are seniors | Rs 45,000 premium for senior-citizen health cover – full deduction |
| Treatment of specified diseases | 80DDB (old regime only) | Rs 1,00,000 | Notified serious illnesses such as cancer or chronic renal failure | Rs 90,000 spent on listed treatment – deductible up to Rs 1 lakh |
| Standard deduction on salary and pension | Old: Section 16(ia); new Act: Section 19 | Rs 50,000 (old) / Rs 75,000 (new) | Flat cut from total income | Rs 6 lakh pension becomes Rs 5.5 lakh taxable in the old regime |
| Investment in Senior Citizens Savings Scheme (SCSS) | 80C (old regime only; Section 123 under the 2025 Act) | Up to Rs 1,50,000 within the 80C ceiling | SCSS deposit (scheme pays 8.2% interest, taxable) | Rs 1,50,000 put in SCSS – claim the full 80C limit |
Only the old regime lets you use 80TTB, 80D, 80DDB, and 80C. The new regime gives only the standard deduction. Family pensioners also get a standard deduction of one-third of family pension or Rs 15,000 (whichever is lower) in the old regime, and Rs 25,000 in the new regime.
Four compliance breaks seniors get
1. No advance tax for pure pensioners
If you are 60+ and have no income from business or profession, you do not pay advance tax. You settle any tax with the return itself, so there is no interest for missing instalments.
2. Form 15H (until FY 2025-26) and the new Form 121
- Form 15H: senior citizens whose total tax for the year is nil submit this to each bank. It stops TDS on interest.
- From 1 April 2026, Forms 15G and 15H are replaced by one unified Form 121 (Section 393(6) of the Income-tax Act 2025, Rule 211). The purpose is the same – stop TDS where tax is nil – with a single form for all ages.
3. Section 194P – no ITR filing for certain 75+ seniors
If you are 75 years or older and your only income is pension plus interest from the same specified bank, the bank deducts TDS on the combined income and you need not file a return. If a refund is due, file anyway.
4. Paper filing for super seniors
People aged 80+ may still file ITR-1 or ITR-4 on physical paper if they prefer it over e-filing.
What changed vs what stayed
| Aspect | Budget 2025 | Budget 2026 |
|---|---|---|
| Section 80TTB limit | Raised from Rs 50,000 to Rs 1,00,000 | No change |
| TDS threshold on bank interest (Section 194A) | Raised to Rs 1,00,000 per bank for seniors | No change |
| Tax slabs for seniors | No change – old age-based slabs remain | No change – new regime slabs unchanged |
| Form 15H/15G | Valid for FY 2025-26 and earlier | Replaced by unified Form 121 from 1 April 2026 |
| Section numbers (2025 Act) | Renumbered: 87A to 156, 80D to 126, 115BAC to 202, 80TTA/80TTB to 153, standard deduction 16(ia) to 19 | Same numbering continues |
Practical tips for senior taxpayers
- Compare both regimes every year. Income mix changes, and the winner can flip. A pensioner with Rs 11 lakh income pays zero in the new regime but nearly Rs 1 lakh in the old regime, as the example above shows.
- Submit Form 121 to each bank if you expect zero tax for the year. File it early in the year, and file one with every bank where you hold deposits – one filing does not cover all banks.
- Keep health-insurance receipts. Section 80D gives up to Rs 50,000 in the old regime, and a missing receipt means losing that saving.
- If you are 75+ and your only income is pension plus interest from one bank, ask the bank about Section 194P. You may skip filing the return.
- SCSS suits safety-first savers. The 8.2% interest is taxable, but the deposit earns an 80C deduction (old regime) up to the Rs 1.5 lakh ceiling.
- Use the standard deduction. Even the old regime cuts Rs 50,000 off pension income; the new regime cuts Rs 75,000. Never skip it.
- Check the 87A rebate limit. In the new regime the Rs 60,000 rebate covers incomes up to Rs 12 lakh. If taxable income sits below that line, tax is zero.
Frequently asked questions
1. What is the income-tax slab for senior citizens in FY 2025-26?
In the old regime, ages 60-79 get Rs 3 lakh tax-free, then 5% up to Rs 5 lakh, 20% up to Rs 10 lakh, and 30% above. Ages 80+ get Rs 5 lakh tax-free, then 20% up to Rs 10 lakh and 30% above. The new regime uses one slab table for all ages: nil up to Rs 4 lakh, then 5%, 10%, 15%, 20%, 25%, and 30%.
2. Is the 80TTB deduction available in the new tax regime?
No. Section 80TTB – up to Rs 1 lakh on deposit interest – works only under the old regime. The new regime replaces it with the Rs 75,000 standard deduction and the larger 87A rebate.
3. What is the TDS limit on FD interest for senior citizens?
Banks and post offices do not deduct TDS while a senior citizen’s interest from them stays within Rs 1,00,000 in a year. Above that, TDS applies at 10%. Seniors expecting nil tax should submit Form 15H (for FY 2025-26) or Form 121 (from 1 April 2026) to each bank.
4. Can a senior citizen skip paying advance tax?
Yes, if the senior is a resident aged 60 or more and has no income from business or profession. The tax is then paid as self-assessment tax at filing time, with no interest for late instalments.
5. At what age is a person treated as a senior citizen for income tax?
A resident individual who is 60 years or older at any time during the financial year. The higher Rs 5 lakh exemption needs 80 years at any time during the year.
6. Is Form 15H still valid, or do I need Form 121 now?
Form 15H is valid for declarations relating to FY 2025-26 and earlier years. For tax years starting 1 April 2026, the unified Form 121 under the Income-tax Act 2025 replaces both 15G and 15H.
7. Do senior citizens get standard deduction on pension?
Yes. Pension is taxed like salary, so the standard deduction applies: Rs 50,000 in the old regime and Rs 75,000 in the new regime.
Official sources
- Income Tax E-Filing Portal – incometax.gov.in
- CBDT website – incometaxindia.gov.in
- India Gazette – egazette.nic.in (Income-tax Act 2025)
Reviewed by Asuthod Rathod, CA
Last updated: 18 October 2026
Disclaimer: This article gives general information only. It is not professional tax advice. Talk to a qualified tax adviser about your own situation.
Editorial byline for eircicai income tax guides — covering the Income Tax Act, 2025, section renumbering, regime comparison, and deductions. Content is reviewed by Asuthod Rathod, CA.