Income Tax Slab For Senior Citizen & Super Senior Citizen FY 2024-25 (AY 2025-26)

The income tax slab rates for senior and super senior citizens under the old regime for the FY 2025-26 (AY 2026-27) are as follows: Rs. 0 to Rs. 3 lakh – Nil, Rs. 3 lakh to Rs. 5 lakh – 5%, Rs. 5 lakh to Rs. 10 lakh – 20%, and income above Rs. 10 lakh will be taxed at 30%.

For super senior citizens (80 years and above), the slab rates under the old regime are: Rs. 0 to Rs. 5 lakh – Nil, Rs. 5 lakh to Rs. 10 lakh – 20%, and income above Rs. 10 lakh will be taxed at 30%.

In comparison, the income tax slab rates under the new regime for the FY 2025-26 (AY 2026-27) are as follows: Rs. 0 to Rs. 4 lakh – Nil, Rs. 4 lakh to Rs. 8 lakh – 5%, Rs. 8 lakh to Rs. 12 lakh – 10%, Rs. 12 lakh to Rs. 16 lakh – 15%, Rs. 16 lakh to Rs. 20 lakh – 20%, Rs. 20 lakh to Rs. 24 lakh – 25%, and income above Rs. 24 lakh will be taxed at 30%.

Classification of Resident Individuals

Income Tax Act has categorized resident individuals into 3 parts-

• Individuals whose age is up to 60 years
• Senior citizens - Individuals whose age is 60 to 80 years
• Super senior citizens - Individuals over 80 years of age

Senior Citizen and Super Senior Citizen

• Under Income tax Act, senior citizens are resident individuals aged above 60 years, while super senior citizens are resident individuals aged above 80 years.
• Resident senior and super senior citizens are provided with concessional tax rates under the old regime. No concessional tax rates are available under the new tax regime for them.
• Also, they have an option to pay tax as per the old or the new tax regime.   
• Non resident senior citizens are not eligible for the concessional tax slabs, the normal provisions of income tax are applicable to them.

Age Eligibility

• Age Attainment Rule: For income tax purposes, a person is considered to have attained a particular age on the day preceding their birthday.
• Application: This rule determines eligibility for senior/super senior citizen tax benefits.
• Age Determination Criteria
  • A resident individual is considered a senior citizen if they attain 60 during the financial year.
  • If a person’s 60th birthday falls on 1st April 2025, they are deemed to have attained the age of 60 on 31st March 2025.
  • Therefore, they are eligible for the higher basic exemption limit of ₹3 lakh under the old tax regime.
    Similarly, the age limit of 80 years is also calculated for super senior citizens.

Income Tax Slab for Senior Citizen

As per the old tax regime, the income tax slabs and respective rates for senior citizens for FY 2024-25 and FY 2025-26 (AY 2025-26 and AY 2026-27) are as follows-

Income Tax Slab for Super Senior Citizen

Super senior citizens over 80 years of age can also avail the benefit of old and new tax regime as they have the choice to opt between the two, whichever is more beneficial.

As per the old tax regime, the income tax slabs and rates for super senior citizen for FY 2024-25 and FY 2025-26 (AY 2025-26 and AY 2026-27) are as follows:

Income Tax Slab Rate as Per New Tax Regime for Senior and Super Senior Citizen 

The new tax regime applies the same tax slabs to all, including senior and super senior citizens. However, tax payers have to forgo many deductions and exemptions available to them.

The income tax slab rate as per the new regime for FY 2024-25 (AY 2025-26) is:

The revised tax slabs under the new regime for FY 2025-26 (AY 2026-27) as amended in Budget 2025 are as follows:

Cess and Surcharge

Cess

The above calculated tax for senior and super senior citizens shall be increased by Health and Education Cess @ 4% for both the regimes.

Surcharge

Additionally, surcharge is applicable on the basis of total income as follows:

The surcharge is applicable on the basis of total income as follows:

Note: The highest surcharge applicable under the new regime is 25%. 

Sources of Income for Senior and Super Senior Citizens

Senior and super senior citizens usually earn income from the following sources :

• Pension
• Interest on savings accounts or fixed deposit schemes 
• Rental Income from renting out a house property
• Income from Capital Gains 
• Senior citizen saving schemes
• Reverse mortgage schemes  
• Post office deposit schemes which also pay interest, and many others 

Benefits Available to the Senior and Super Senior Citizen

Senior and super senior citizens are eligible to avail numerous tax benefits as offered by Income-tax Act, 1961 as are described below:

Higher Income Exemption Limit

• Senior citizens are required to pay tax over the income of Rs. 3 lakhs under the old tax regime 
• This limit is Rs. 5 lakhs for super senior citizens. 
• This benefit is not available for the ordinary individuals as the limit is Rs. 2.5 lakhs for them.

Standard Deduction

• If they are earning salary or pension income, they can claim a deduction of Rs. 50,000 from such income. 
• For FY 2024-25 the standard deduction amount has been increased to Rs. 75,000 under the new tax regime. 

Rebate under Section 87A

• If taxable income is up to Rs. 5 lakhs, then the senior and super senior citizens can claim rebate from tax under the old tax regime, i.e. they are not required to pay any tax. 
• Whereas under the new tax regime, the total income limit is up to Rs. 7 lakhs and rebate can be claimed up to Rs.25,000. 

Higher Deduction for Medical Insurance Premium

• Under the old tax regime, deduction can be claimed on medical insurance premium under section 80D
• For senior citizens and super senior citizens, the maximum limit is Rs. 50,000 as against Rs.25,000 for other tax payers.
• This same deduction cannot be claimed under the new tax regime.

Higher Deduction for Specified Disease Treatment

• They can claim a flat deduction of Rs. 1,00,000 in respect of medical expenses incurred for specified diseases under Section 80DDB.

Higher Deduction for Bank and Post Office Interest

• Senior citizens taxpayers can claim a total deduction up to Rs. 50,000 in respect of interest earned from savings bank accounts, bank deposits, post office deposits or cooperative banks under Section 80TTB. 
• While people below 60 years of age can claim deduction only up to Rs 10,000 on interest earned in savings bank account.

Exemption from Advance Tax Payment

• Senior citizens are not required to pay advance tax if they do not earn any income from business or profession. 
• Therefore, no interest is levied on late payment of advance tax.

Benefit of Reverse Mortgage Scheme

• If a senior citizen transfers his house under reverse mortgage scheme where he receives monthly installments, he is not required to pay any capital gains tax on such transfer of house.

Deduction on Investment in Senior Citizens Savings Scheme

• Senior citizens over 60 years of age can invest in the Senior Citizens Savings Scheme thereby claiming a deduction up to Rs. 1.5 lakhs under Section 80C.
• This deduction is available only under old tax regime.
• This scheme also ensures regular as well as higher interest payouts. The same deduction cannot be claimed under the new tax regime.

When are Senior Citizens not Required to File Income Tax Return?

Senior citizens are not required to file income tax return subject to satisfaction of all the below conditions:

• Their age is 75 years or more
• Total income consists of only pension and interest income. Interest income can be from any account maintained with the same bank in which they receive pension.
• They have submitted a declaration to the bank
• TDS is deducted by such bank under Section 194P

Conclusion

Filing an income tax return is an important way to declare your total income and contribute to the nation's development. It helps the government fund infrastructure and essential services such as healthcare and defense. Meeting all tax obligations before the due date is crucial to avoid penalties and legal consequences. Additionally, filing an income tax return holds significant legal value as it is an official record with the government.