As the Income Tax Return (ITR) filing season for Assessment Year 2025-26 begins, many taxpayers—especially senior citizens—are evaluating the deductions and exemptions they are entitled to. The Income Tax Act provides several tax concessions for senior and super senior citizens to ease their financial burden and simplify compliance.
A Senior Citizen is an individual aged 60 years or above but less than 80 years at any time during the financial year.
A Super Senior Citizen is someone aged 80 years or above.
One of the most significant benefits for senior citizens is the enhanced exemption threshold under the Old Tax Regime:
Senior Citizens (60–79 years): ₹3 lakh
Super Senior Citizens (80 years & above): ₹5 lakh
In contrast, the exemption limit for individuals below 60 years is ₹2.5 lakh.
This means income up to these thresholds is completely tax-free, helping reduce the tax liability substantially.
Senior citizens can claim a higher deduction of up to ₹50,000 under Section 80D for:
Medical insurance premiums, or
Medical expenditure (if no insurance is taken)
This is notably higher than the ₹25,000 limit available to taxpayers below 60.
If a senior citizen incurs medical expenses for specified critical illnesses (like cancer, Parkinson’s, chronic renal failure, etc.), they can claim up to:
₹1,00,000 as deduction under Section 80DDB
For non-senior citizens, this limit is restricted to ₹40,000.
Senior and super senior citizens are allowed to claim a deduction of up to ₹50,000 on interest income earned from:
Savings accounts
Fixed deposits (FDs)
Recurring deposits (RDs)
in banks, co-operative banks, and post offices.
This benefit under Section 80TTB is exclusive to senior citizens and replaces the earlier Section 80TTA deduction of ₹10,000 available to other individuals.
Senior citizens who do not have income from business or profession are exempt from paying advance tax. They can simply pay self-assessment tax before filing their return, reducing compliance hassles.
Introduced in Budget 2021, Section 194P provides relief to resident senior citizens aged 75 years or above who:
Have only pension and interest income (from the same bank)
Furnish a declaration to the bank
In such cases, the bank deducts applicable tax, and the individual is not required to file an ITR.
Senior citizens enjoy a host of benefits under the Income Tax regime to ease their compliance and reduce their tax burden. Whether it’s higher exemption limits, better medical-related deductions, or simplified filing processes, these provisions are designed to offer financial support in the later stages of life.
As the ITR filing deadline approaches, senior taxpayers should evaluate which regime suits them better (Old vs New) and make full use of available deductions to optimise their tax liability.
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