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Taxability of Post office senior citizens deposit

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This query is : Resolved

mohamed ali & co (Querist)
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03 December 2025 A senior citizen has received Rs. 500,000 from interest on post office senior citizen deposit scheme. He wants to claim exemption on this interest income for 25-26. Can the experts tell if such interest income is exempt under the new regime.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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03 December 2025 No, the interest income of Rs. 500,000 from the Post Office Senior Citizen Savings Scheme (SCSS) is not exempt under the new tax regime for FY 2025–26. It is fully taxable. However, senior citizens may still end up paying zero tax if their total income is within the rebate threshold of Rs. 12 lakh under Section 87A in the new regime.

Resident individuals (including senior citizens) with taxable income up to Rs. 12 lakh pay zero tax under Section 87A.
This means:
- If the senior citizen’s total income including SCSS interest is ≤ Rs. 12 lakh, they will not pay any tax.

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