Income Tax for Senior Citizens 2026 — Slabs, Exemptions, 80TTB, Form 15H

Senior citizens (60+) and super senior citizens (80+) get special tax benefits under the old tax regime. Here is the complete guide for FY 2026-27.

Who is a Senior Citizen for Tax Purposes?

Important: Under the new tax regime, there is no age-based benefit. The basic exemption is ₹4,00,000 for all taxpayers regardless of age.

Income Tax Slabs for Senior Citizens (Old Regime, FY 2026-27)

Senior Citizens (60–79 Years)

Section 87A rebate: If taxable income is ₹5L or below, full rebate applies — net tax = ₹0.

Super Senior Citizens (80+ Years)

Super senior citizens have nil tax up to ₹5L — no Section 87A rebate needed.

Key Tax Benefits for Senior Citizens

Section 80TTB — Interest Income Deduction

Senior citizens can claim a deduction of up to ₹50,000 on interest income from:

• Savings accounts
• Fixed deposits
• Recurring deposits
• Post office deposits

This replaces Section 80TTA (₹10,000 limit) for senior citizens.

Available only under the old tax regime.

Section 80D — Higher Health Insurance Deduction

Senior citizens can claim up to ₹50,000 on health insurance premiums (vs ₹25,000 for those below 60).

If you pay premiums for senior citizen parents, you can claim an additional ₹50,000.

Maximum combined deduction: ₹1,00,000 (₹50K for self + ₹50K for parents, both senior citizens).

Section 80DDB — Medical Treatment

Senior citizens can claim up to ₹1,00,000 for medical treatment of specified diseases (cancer, neurological diseases, etc.) — vs ₹40,000 for those below 60.

Advance Tax Exemption

Senior citizens with no business income are exempt from paying advance tax. They pay all tax as self-assessment tax when filing ITR.

This is a significant benefit — no quarterly advance tax instalments required.

Form 15H — No TDS on FD Interest

If your total income is below the taxable limit, you can submit Form 15H to your bank to prevent TDS deduction on FD interest.

Eligibility:

• Age 60 or above
• Estimated tax liability for the year is nil

How to submit:

1. Download Form 15H from the bank's website or IT portal
2. Fill in your PAN, estimated income, and declaration
3. Submit to your bank at the beginning of each financial year

Important: Submit Form 15H at the start of the financial year (April). If submitted mid-year, TDS already deducted cannot be reversed — you must claim it as a refund in your ITR.

Should Senior Citizens Choose Old or New Regime?

The old regime is often better for senior citizens because:

• Higher basic exemption (₹3L or ₹5L vs ₹4L in new regime)
• Section 80TTB (₹50K interest deduction)
• Section 80D (₹50K health insurance)
• Section 80C (₹1.5L investments)

Example (senior citizen, 65 years, FY 2026-27):

Old regime saves ₹41,250 in this example.

ITR Filing for Senior Citizens

Senior citizens file the same ITR forms as other taxpayers:

• ITR-1: Pension + one house property + interest income (up to ₹50L)
• ITR-2: Capital gains, multiple properties, foreign income

Deadline: July 31, 2026 for ITR-1 and ITR-2.

E-verification: Senior citizens can e-verify using Aadhaar OTP, net banking, or by sending physical ITR-V to CPC Bengaluru.

Frequently Asked Questions

Are senior citizens exempt from filing ITR?

No. Senior citizens must file ITR if their income exceeds the basic exemption limit (₹3L for 60-79 years, ₹5L for 80+ years under old regime). However, senior citizens above 75 years with only pension and interest income from the same bank are exempt from filing ITR (Section 194P).

Can senior citizens file ITR-1?

Yes, if their income is from pension, one house property, and interest — and total income is below ₹50L.

What is Section 194P?

Senior citizens above 75 years with only pension and interest income from the same bank can opt for Section 194P. The bank deducts TDS on their behalf and they are exempt from filing ITR.

---

Senior citizen with pension and FD income? I handle ITR-1 for senior citizens starting ₹399. Message me on WhatsApp.