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 necessary 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 more difficult for them. Most senior citizens depend on their hard-earned money, pension and income from other sources, so it becomes 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 above are called senior citizens. At the same time, people aged 80 years or above are placed in the category of super senior citizens. Some special 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 if you choose the Old Tax Regime.
Section 80TTA: Exemption 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 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 account, fixed deposit, and recurring deposit under Section 80TTB. This exemption is applicable on interest from bank, post office or co-operative bank. CA Sonu Jain of 9 Point Capital says that senior citizens get more benefit 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 deposit, they can claim a deduction of Rs 50,000, and will have to pay tax only on Rs 10,000. This facility is also available only in the old tax regime.
No exemption in the new tax regime
There is no exemption under section 80TTA and 80TTB in the new tax regime. 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.