Tax Saving Tips: The process of filing Income Tax Return (ITR) for the financial year 2024-25 is going on. 15 September 2025 is the last date for filing returns. People from every section must be looking for tax exemption options. Similarly, senior citizens in the country also get tax exemption.
Tax Saving Tips: Filing Income Tax Return (ITR) is mandatory for every taxpayer in India. But many times it is seen that people find filing income tax a very complicated task. Especially when it comes to senior citizens, it becomes even more difficult for them. Most senior citizens depend on their hard-earned money, pension and income from other sources, so it becomes even more important for them to understand the tax rules and take advantage of them.
Who are considered senior citizens
According to the Income Tax Act, 1961, people aged 60 years or more are called senior citizens. Whereas, people aged 80 years or more are placed in the category of super senior citizens. Certain exemptions and benefits have been given in the tax rules for both, which may vary according to their age and income. Senior citizens can avail tax exemption under 80TTB and 80TTA of the Income Tax Act. This exemption is available only when the Old Tax Regime is chosen.
Section 80TTA: Deduction up to Rs 10,000
This rule is for people below 60 years of age and Hindu Undivided Family (HUF). You can get a deduction of up to Rs 10,000 on interest earned from savings account of a bank, post office, or co-operative society. This exemption is applicable only in the old tax regime and is not available on fixed or recurring deposits.
Section 80TTB: Big relief for senior citizens
Senior citizens above 60 years of age can avail a deduction of up to Rs 50,000 on interest earned from savings accounts, fixed deposits, and recurring deposits under section 80TTB. This exemption applies to interest from banks, post offices, or co-operative banks. CA Sonu Jain of 9 Point Capital says that senior citizens get more benefits by staying in the old tax system, especially when their income depends on interest.
For example, if a senior citizen gets interest of Rs 60,000 from their fixed deposits, they can claim a deduction of Rs 50,000, and will have to pay tax on only Rs 10,000. This facility is also available only in the old tax regime.
There is no exemption in the new tax regime.
In the new tax regime, there is no exemption under section 80TTA and 80TTB. In such a situation, if your interest income is high, then choosing the old regime can be beneficial. Especially for retired people, who are dependent on interest income, more exemption is available in the old regime.
