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ArticleThe tax law gives senior citizens several extra breaks that are easy to miss — a higher basic exemption, a much larger interest deduction, and bigger health-related limits. Here's how senior citizens (and super-seniors) can save tax in retirement.
Reviewed by CA Harika Chebolu, FCA · Last updated 2026-06-13
Quick answer
Seniors get a higher exemption, the generous 80TTB interest deduction, bigger 80D and 80DDB limits, and advance-tax relief. Here's the senior citizen's tax guide.
In the old regime, the basic exemption is Rs 3,00,000 for senior citizens (60+) and Rs 5,00,000 for super-senior citizens (80+), against Rs 2,50,000 for others. If you stay in the old regime, that higher slab itself shelters more income before any tax begins.
This is the big one for retirees: Section 80TTB gives senior citizens a deduction of up to Rs 50,000 on interest from savings accounts, fixed deposits and recurring deposits — far more than the Rs 10,000 under 80TTA for others. With much of a retiree's income coming from deposits, this is a major saving.
For senior citizens the 80D health-insurance deduction rises to Rs 50,000, and you can also claim it for medical expenditure where no insurance is held. If you also pay premiums for your own senior parents, those add further. Health cover gets more valuable, and more deductible, with age.
Senior citizens get a higher 80DDB deduction — up to Rs 1,00,000 — for the treatment of specified serious illnesses, against Rs 40,000 for others. With a prescription from the relevant specialist, this covers real medical costs that retirees often face.
A welcome relief: a resident senior citizen with no income from business or profession is exempt from paying advance tax and can pay any tax due as self-assessment at filing. That removes the quarterly-instalment burden for most retirees living on pension and interest.
In the old regime, Rs 3,00,000 for those 60+ and Rs 5,00,000 for those 80+ , against Rs 2,50,000 for others. The new regime offers a higher exemption and Rs 75,000 standard deduction instead — compare both.
A deduction of up to Rs 50,000 on interest from savings, fixed and recurring deposits , available only to senior citizens. It's far more generous than the Rs 10,000 under 80TTA and is the biggest saver for most retirees.
No — a resident senior citizen with no business or professional income is exempt from advance tax and can pay any tax due at filing as self-assessment.
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