Income tax for senior citizens and pensioners in India

Higher limits for seniors, interest income, TDS on FDs, and when you don't need to file.

How much income is tax-free for senior citizens?

In the new regime, the limits are the same at every age: no tax on taxable income up to ₹12 lakh after the rebate, with a ₹75,000 standard deduction on pension from a former employer. In the old regime, the basic exemption is ₹3 lakh from age 60 and ₹5 lakh from age 80.

Is interest from FDs taxed?

Yes, at your slab rate. In the old regime, seniors can deduct up to ₹50,000 of bank and post office interest under section 80TTB, and up to ₹50,000 of health insurance under 80D.

How do I stop TDS on my fixed deposits?

Banks deduct TDS once your interest from them passes ₹1 lakh in a year. If your total income is below the taxable limit, submit Form 15H to the bank at the start of the year.

Do I have to file a return at 75?

Not if you're 75 or older, a resident, and your only income is pension and interest from the same bank that pays your pension. Give the bank a declaration and it works out and deducts your tax.

Do I pay advance tax?

Resident senior citizens with no business income don't have to pay advance tax.

Rules for FY 2025-26 income, updated 23 September 2026. Section numbers are from the Income-tax Act 1961; the Income-tax Act 2025 renumbers them from FY 2026-27. This is general information, not tax advice.

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Frequently asked questions

What is the tax-free limit for senior citizens in FY 2025-26?
In the old regime, ₹3 lakh for ages 60 to 79 and ₹5 lakh from age 80. In the new regime, the basic limit is ₹4 lakh at any age, and the rebate makes taxable income up to ₹12 lakh tax-free.
Can a senior citizen submit Form 15H?
Yes, if the tax on their estimated total income for the year is nil. Form 15H stops the bank deducting TDS on interest.