“Synopsis”
Tax season is here, and if you’re a senior citizen aged 60 or above, the government has rolled out several income tax benefits to make your financial life easier. From deductions on health insurance to exemptions from filing returns, this guide breaks down all the key benefits available to senior and super senior citizens in India for FY 2025–26.
1. ₹50,000 Deduction on Health Insurance Premiums
Senior citizens can claim a deduction of up to ₹50,000 under Section 80D for health insurance premiums paid for themselves or their spouse. If you’re also paying for your senior citizen parents’ insurance, you can claim an additional ₹50,000 — total deduction: ₹1,00,000.
2. Tax Relief on Treatment of Serious Illnesses
Under Section 80DDB, senior citizens can claim up to ₹1,00,000 for the treatment of specified critical illnesses like cancer, Parkinson’s, and kidney failure. A certificate from a specialist doctor is required.
3. ₹50,000 Tax-Free Interest from Banks and Post Offices
Senior citizens can claim a deduction of up to ₹50,000 on interest income earned from savings accounts, fixed deposits, and post office schemes under Section 80TTB. This is over and above the ₹1.5 lakh deduction under Section 80C.
4. No TDS on Interest Income up to ₹50,000 (Soon ₹1 Lakh)
If your total interest income is below ₹50,000 in a financial year, you can submit Form 15H to your bank or post office to avoid TDS. From FY 2025–26, this limit is expected to increase to ₹1,00,000.
5. No ITR Filing for 75+ Citizens with Pension and Interest Income
If you’re 75 years or older, and your income is only from pension and interest (from the same bank), you don’t need to file an income tax return. Just submit a declaration to your bank, and they’ll handle the tax deduction for you under Section 194P.
6. No Advance Tax if You Don’t Have Business Income
Senior citizens who don’t have income from business or profession are exempt from paying advance tax, even if their total income exceeds ₹10 lakh. You can pay your tax at the time of filing your return without penalty.
7. Paper-Based ITR Filing Allowed for 80+ Citizens
Super senior citizens (80 years and above) with income below ₹5 lakh and no refund claim can file their income tax return using a physical paper form instead of e-filing.
Conclusion
Tax planning for retirees has become easier and more rewarding. With higher exemption limits, special deductions, and simplified filing options, the government is making sure that our elders can enjoy their retirement with less financial stress.