September 13, 2025

The Income Tax Department has rolled out a sparkling new brochure just for senior citizens aged 60 and above, and super senior citizens 80 and above. It reveals the updated tax rules and juicy benefits for AY 2025-26 and AY 2026-27. Chartered Accountant Suresh Surana explains that both old and new tax regimes will be live for all taxpayers, including seniors. What's the catch? The old regime gives higher basic tax-free limits plus deductions. The new one tempts you with low tax rates but cuts down on deductions. For seniors, under the old regime, income slabs depend on age: 60-79 years get a basic exemption up to Rs 3 lakh, while super seniors over 80 get Rs 5 lakh! But under the new regime, everyone shares the same slab rates, regardless of age. Here’s the old regime breakdown: - Seniors (60-79 years): No tax up to Rs 3 lakh, 5% for Rs 3-5 lakh (which can be zero after rebate under section 87A), 20% for Rs 5-10 lakh, and 30% above Rs 10 lakh. - Super seniors (80+): No tax up to Rs 5 lakh, 20% for Rs 5-10 lakh, and 30% beyond. Under the new regime, slabs shift slightly each year. For FY 2024-25, no tax up to Rs 3 lakh, rising to Rs 4 lakh for FY 2025-26, with varying rates from 5% to 30% as income climbs. Who is a senior or super senior? Anyone 60+ but less than 80 is senior; 80+ is super senior. Both enjoy extra tax goodies! Want to avoid TDS on your fixed deposit interest? Submit Form 15H! Executive Director Sanjoli Maheshwari reveals seniors can declare their estimated income as NIL tax to stop TDS deductions. “If a senior’s income is Rs 12 lakh or below under the new regime with rebate under Section 87A, Form 15H helps him avoid TDS,” she says. More spice: Senior citizens enjoy higher basic exemptions — Rs 3 lakh or Rs 5 lakh in the old regime, depending on age. Advance tax? If you don’t earn business income, you’re exempt! Deductions galore come from pensions: up to Rs 75,000 (new regime, AY 2025-26) or Rs 50,000 (old regime). For health expenses, seniors can claim up to Rs 50,000 for insurance and medical costs. Plus, they can claim generous deductions for disabled dependents (up to Rs 1.25 lakh) and specified disease treatments (up to Rs 1 lakh). Also, they get a sweet Rs 50,000 deduction on interest income from bank/post office deposits under section 80TTB, way higher than the Rs 10,000 for younger taxpayers! Filing your ITR? Super senior citizens with income over Rs 5 lakh or refund claims can still file manually (paper mode), no need for e-filing. And here’s a cherry on the cake — if you transfer your home under the government’s reverse mortgage scheme, the capital gains tax won’t pinch you! Lastly, senior citizens aged 75 or more who only have pension and bank interest income need not file ITR. The bank handles their taxes directly. So, seniors and super seniors, it’s time to sharpen your pencils and check out these juicy tax tips to keep more money in your pocket!

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Tags: Senior citizens, Income tax slabs, Tax regime, Form 15h, Medical deductions, Advance tax,