Senior citizens are categorized by age and this classification decides income tax purposes which determines applicable tax slabs, exemptions and return filing rules.
- Normal taxpayer: Under 60 years.
- Senior citizen: Age 60 to 79 years.
- Super senior citizen: Age 80 years and above.
- Specified senior citizen (age above 75): If income is only from pension or interest credited in one bank may skip ITR filing under Section 194P by providing a declaration, as the bank handles TDS.
ITR Filing Rules
Income tax is calculated on financial year basis i.e., FY 2025-26 runs from 1 April 2025 to 31 March 2026, assessed in Assessment Year 2026-27.
ITR filing is mandatory if total income exceeds Rs 4 lakh, even if no tax is payable or TDS is deducted-this applies to everyone, including senior citizens.
Time Limit
- To be file by 31 July 2026 for FY 2025-26 using ITR-1/2 for salary/pension/rent/interest/capital gains (no business), ITR-3/4 for business.
- Belated ITR allowed until 31 December 2026.
Heads of Income and Applicable ITR Forms
Income falls under five heads, influencing ITR form choice-seniors typically use ITR-1 to ITR-4 (ITR-5/6/7 not applicable).
| Head of Income | Examples |
| Salary/Pension | Monthly pension or salary |
| House Property | Rent from house/shop |
| Capital Gains | Profits from shares, property, mutual funds |
| Business/Profession | Sales, services, F&O, intraday trading |
| Other Sources | FD/savings interest, Senior Citizen Savings Scheme |
New Tax Regime
New tax regime (default), a simple slabs with no major deductions (like 80C, HRA, home loan) but it can be switchable annually, except for business income (ITR-3/4) where only one lifetime switch is allowed.
| Income Range | Tax Rate |
| Up to Rs 4 lakh | 0% |
| Rs 4-Rs 8 lakh | 5% |
| Rs 8-Rs 12 lakh | 10% |
| Rs 12-Rs 16 lakh | 15% |
| Rs 16-Rs 20 lakh | 20% |
| Rs 20-Rs 24 lakh | 25% |
| Above Rs 24 lakh | 30% |
Rebate under Section 87A: If your income is up to Rs 12 lakh then tax payable will become zero because of full (Rs 60,000) tax rebate. But note this only applicable for normal income not for special or super-special incomes (like capital gains, gaming, lottery, etc.).
For Example:
House property
If a senior citizen is earning only through rental income say Rs 17,00,000 yearly, after 30% standard deduction on Rs 17 lakh = Rs 11.9 lakh which is less than Rs 12 lakh → tax payable becomes zero.
Salary/pension
If income is only from salary or pension, after Rs 75,000 standard deduction if entire salary or pension income become upto Rs 12 lakh, then tax will be zero.
Business income
Net profit (after expenses) less than Rs 12 lakh → zero tax.
Special and Super Special Income Tax Rates
Special incomes taxed at flat rates, ignoring Rs 4 lakh exemption or Rs 12 lakh rebate.
- Short-term capital gains (STCG): 20%
- Long-term capital gains (LTCG): 12.5% after Rs 1.25 lakh deduction.
- Super special (lottery, crypto, gaming): 30% flat - no exemptions
Cess and Surcharge
4% health & education cess on tax applies but surcharge added if income >Rs 50 lakh.
Advance Tax
Senior citizen not business/profession income need not have to pay advance tax.
Old Tax Regime
| For seniors (60-80) | Super seniors (Above 80) |
| Up to Rs 3 lakh = 0% | Up to Rs 3 lakh = 0% |
| Rs 3-Rs 5 lakh = 5% | Rs 3-Rs 5 lakh = 0% |
| Rs 5-Rs 10 lakh = 20% | Rs 5-Rs 10 lakh = 20% |
| Above Rs 10 lakh = 30% | Above Rs 10 lakh =30% |
Other Benefits
- Standard deduction Rs 50,000.
- Deduction and exemptions 80C, 80D,, Home Loan, HRA etc.
- Rebate of Rs 12,500 can be taken if overall income is up to Rs 5,00,000 except special income.
- Special rates similar: STCG 20%, LTCG 12.5% after Rs 1.25 lakh, Lottery or crypto or gaming 30% tax applies.
TDS Exemptions for Seniors
Normals (Age up to 60 years): Form 15G if income is below Rs 4 lakh.
For Seniors (Age above 60 years): No TDS on interest up to Rs 1 lakh; Form 15H can be submitted if total income up to Rs 12 lakh
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