Income Tax Benefits for Senior Citizens and Super Senior Citizens

Whether we like it or not, we all worry about the future and considerably make choices to save and invest money to have a secure tomorrow. However, don’t you think there should be some senior citizen tax exemption limit and other benefits for taxpayers over the age of 60 who’ve already given a lot in their younger days?

So, let’s talk about some of these income tax benefits for senior citizens.

Team Digit

Who is Considered Senior & Super Citizen in India?
Why Should Senior Citizens Have Special Income Tax Benefits?
10 Special Income Tax Benefits
Frequently Asked Questions

Who is Considered a Senior Citizen in India?

According to the law, a senior citizen is an individual resident between the age group of 60 to 80 years at any time during the respective financial year.

Who is Considered a Super Senior Citizen in India?

A super senior citizen is an individual resident whose age is 80 years or above, at any time during the respective financial year.

Why Should Senior Citizens Have Special Income Tax Benefits?

India’s history hails from a culturally enriched background where elders are paid respect and love. They are cared for to guide the generations on happy and odd events. The government is working in tandem to keep the culture and moral values intact income tax rebates for senior citizens and other tax benefits. Their idea is to relieve them from stress at this phase of life.

Suppose you or your senior citizen parents are planning their funds. In that case, knowing about the tax benefits for senior and super senior citizens that can be availed is crucial.

10 Special Income Tax Benefits for Senior Citizens Aged 60 and Above

Here are some exemptions, deductions and benefits that help provide income tax relief for senior citizens and super senior citizens.

1. The Elementary Exemption Benefit

Every individual in India, who falls under the income bracket to pay tax, is allowed some elementary waivers.

The senior citizen income tax exemption limit is up to ₹3 lakhs under the old tax regime and ₹4 lakhs under the new tax regime, effective April 1, 2025.

Super citizens get a higher advantage, considering their income and age. For them, the income tax exemption limit is up to ₹5 lakhs under the old tax regime in a financial year, while the exemption under the new regime is the same for all taxpayers.

Other than the senior or super citizens, this exemption for ordinary citizens is up to ₹2.5 lakhs underthe old regime.

2. Higher TDS Threshold

Senior citizens who are residents of India get the benefit of a higher TDS deduction on interest earned up to ₹1 lakh annually after Budget 2025, which was earlier capped at ₹50,000. This limit is ₹40,000 for non-senior citizens.

This deduction under 80TTB considers interest earned in the savings bank account, deposits in a bank, and/or deposits in the post office. When filing their Income Tax Return (ITR), senior citizens must fill the form 15H.

Further, the budget also hiked the TDS threshold from ₹2.4 lakh to ₹6 lakh annually, for rent paid for land/building, effective from April 1, 2025.

3. Benefits Under Medical Insurance

The Section 80D limit for senior citizens on payment of the health insurance premium is up to ₹50,000. For taxpayers under 60 years of age, this limit is ₹25,000.

Super senior citizens who are not medically insured can also enjoy this benefit. For super citizens, under Section 80D, the deduction for the payment of medical premiums as well as the actual expenses incurred on their treatment are allowed.

4. Exemption from Filing ITR

Under Section 194P, senior citizens aged 75 and above are exempted from filing the ITR if they fulfill the following criteria:

They have income only from their pension.
They receive income from interest and pension in the same bank account.
They have furnished a declaration form 12BBA to the specified bank.

5. No Advance Tax

While individuals below the age of 60 must pay an advance tax if their tax liability is ₹10,000 or more in a financial year, senior citizens are free from this burden unless they make income from business or profession.

6. Allowance for the Treatment of Specified Diseases

The Indian government allows individual taxpayers and dependent relatives below the age of 60 not to pay tax if medical treatment costs close to ₹40,000.

For dependent senior and super senior citizens, this deduction limit is up to ₹1 lakh if they undertake any treatment for a specified disease/critical illness in a financial year, as per Section 80DDB of the Income Tax Act.

7. Income Tax Return Benefits

Super Senior Citizens (individuals above 80 years) can file for their Income Tax Returns through either Sahaj (ITR 1) or Sugam (ITR 4). They can choose to do it either manually or electronically.

8. No Tax Under the Reverse Mortgage Scheme

Senior citizens may reverse the mortgage on any of their accommodations to make monthly earnings. The ownership of the property remains with the senior citizens, and they are given monthly payments for it. The amount paid in installments to the owner is exempt from income tax.

9. IT Benefit on Pension Income

Senior citizens are allowed a standard deduction of ₹50,000 for their pension income, including family pensioners who can avail of deduction benefits up to ₹15,000.

Also, after Budget 2025, taxpayers aged over 75 will continue to be taxed as per the applicable tax slab. This means that taxpayers belonging to such category who only have pension income and interest income from the scheduled bank in which the pension income is received shall be exempt from filing ROI (Return of Income).

10. Tax-free NSS Withdrawals

Withdrawals from NSS (National Savings Scheme) accounts after August 29, 2024, are also exempt from taxes under the amended Section 80CCA.

Earlier, this senior citizen income tax exemption was allowed only when the withdrawals were made to close the NSS account due to the death of the account holder.

Also, individuals can check out the income tax slabs for senior and super senior citizens for FY 2024-25 and FY 2025-26.

FAQs about Tax Benefits for Senior Citizens

All

What is the standard deduction for senior citizens?

As per the latest changes in the Income Tax Act, the standard deduction for senior citizens is ₹75,000 after changes proposed by Budget 2025.

What is the maximum age for senior citizens to pay income tax?

This is not dependent on age but on the basic income of the respective senior citizen (this includes rent allowances, fixed and other sources of income). However, under the old tax regime, the exemption limit is higher for senior and super senior citizens, ₹3 lakhs and ₹5 lakhs, respectively.

What is the health insurance tax benefit limit for senior citizens?

As per Section 80D of the Income Tax Act, senior citizens can get a tax benefit of up to ₹50,000 (this includes preventive health checkups) if they have opted for a valid health insurance plan and are paying the annual premium required for the same.

Are 80TTA and 80TTB both applicable to senior citizens?

Deductions claimed under Section 80TTA and Section 80TTB are similar. However, 80TTA offers interest deductions up to ₹10,000 only for taxpayers under 60 years and HUF, while 80TTB is applicable for individual taxpayers over 60 and allows benefits of up to ₹50,000.

What is the TDS limit for senior citizens?

From April 1, 2025, TDS limit for senior citizens on the interest income from fixed deposits (FDs), recurring deposits (RDs), etc., is hiked up to ₹1 lakh annually.

Is HRA exemption available for senior citizens paying rent?

Yes, senior citizens can claim HRA exemption if they are paying rent. The process is like that for other salaried individuals. They need to provide rent receipts and provide the landlord's PAN, if applicable. If they don’t know how to calculate HRA exemption, they can use an online HRA calculator as well.

How to calculate income tax for senior citizens?

For senior citizens, income tax is calculated based on their specific tax slabs that offer higher exemption limits under the old tax regime. Senior citizens (60-80 years) and super senior citizens (80+ years) have different slabs. Using an income tax calculator can help determine the exact tax liability.