Senior and super senior citizens get several tax concessions under the old regime — from higher basic exemption limits to relaxed advance tax requirements. Here's what applies, and how the new regime changes the picture.
| Category | Age Criteria |
|---|---|
| Senior Citizen | 60 years or more, but less than 80 years, at any time during the financial year |
| Super Senior Citizen | 80 years or more at any time during the financial year |
These age-based categories are relevant primarily under the old tax regime, which provides higher basic exemption limits for senior and super senior citizens compared to regular taxpayers. The new tax regime applies the same slab structure to all individuals regardless of age — see our income tax slabs guide for the current slab rates under both regimes.
Under the old regime, senior citizens have a higher basic exemption limit than the general limit applicable to individuals below 60, and super senior citizens have an even higher exemption limit. This means a larger portion of income is tax-free before any slab rate applies, compared to a younger taxpayer with the same income under the old regime.
While regular taxpayers can claim a deduction under Section 80TTA (on savings account interest, up to a limit), senior citizens can instead claim a deduction under Section 80TTB, which covers interest from savings accounts, fixed deposits, and recurring deposits with banks, post offices, and cooperative societies — at a significantly higher limit than 80TTA, and covering a broader range of deposit types. This is available only under the old regime.
Senior citizens (60+) who do not have any income from "Profits and Gains of Business or Profession" are exempt from the requirement to pay advance tax, and can instead pay their full tax liability through self-assessment tax at the time of filing their return, without attracting interest under Sections 234B/234C for non-payment of advance tax. This is a meaningful compliance relaxation for retirees living off pension, interest, and other passive income.
Senior citizens get a higher Section 80D deduction limit for health insurance premiums (and for medical expenditure if no insurance is taken, in specific cases) compared to younger taxpayers — see our Section 80D guide for the exact limits by age category.
Pension income is generally taxed similarly to salary income for TDS purposes (where applicable), while bank interest is subject to TDS under Section 194A if it exceeds the threshold — which is higher for senior citizens than for other taxpayers. Submitting Form 15H (declaration of no tax liability) where eligible can help avoid TDS deduction on interest income.