Union Budget for Senior Citizens in 2026

The tax deduction limit on interest has been was increased to Rs.1 lakh from Rs.50,000. The main aim of the move is was to reduce the Tax Deducted at Source (TDS) on any interest income.

This move benefited senior citizens who invested in post office deposits, bank deposits, and the Senior Citizens’ Savings Scheme (SCSS). The new rule came into effect on 1 April 2025 and was applied to FY 2025–26.

Tax Benefits for Senior Citizens in Union Budget 2024

As per the Union Budget 2024, presented by Finance Minister Nirmala Sitharaman, no changes were made in the policies related to senior citizens. The Union Budget 2024 focused on initiatives for youth, women, and infrastructure development.

However, several senior citizens impacted by long-pending tax disputes were expected to benefit from the government’s decision to write off disputed income-tax demands up to Rs.25,000.

Tax Benefits for Senior Citizens in union Budget 2023

Union Budget 2023 hiked the maximum permissible investment in the Senior Citizens Savings Scheme. It was one of the most reputed investment schemes for elderly people. The Post Office Monthly Income Scheme became more attractive after the budget.

Under the Senior Citizen Savings Scheme (SCSS), the maximum limit ranged from Rs. 30 lakhs to Rs. 15 lakhs. The scheme provided 8% interest per annum, which was paid on a quarterly basis.

Under the Post Office Monthly Income Scheme (POMIS), the investment limit had been increased by Rs. 9 lakhs. Earlier, it was Rs. 4.5 lakh. In the case of joint accounts, the investment limit had been increased to Rs. 15 lakhs from Rs. 9 lakhs. Investors could earn an interest of 7.1% per annum.

Tax Benefits for Senior Citizens in union Budget 2022

In Union Budget 2022, the Union Finance Minister Nirmala Sitharaman in her budget extended tax benefits to senior citizens above 75 years of age. As per Sitharaman, senior citizens who are above 75 years and depend on only pension and interest income will no longer have to file I-T returns.

Income Tax Slabs for Senior Citizens

In Union Budget 2026, the Finance Minister did not announce any changes in tax slabs or basic exemption limits. The slabs that were announced in the previous budget remain in force for FY 2026-27 (AY 2027-28). The tax slab for senior citizens aged between 60 and 80 years of age is listed below:

Income Tax Slab for Senior Citizens as per Old Tax Regime

The income tax slab for senior citizens as per the old tax regime is as follows:

Income Tax Slab for Super Senior Citizens as per Old Tax Regime

The income tax slab for super senior citizens as per the old tax regime is as follows:

Income Tax Slab for Senior and Super Citizens as per New Tax Regime

The income tax slabs for senior and super senior citizens as per new tax regime is as follows:

Note: As per the new tax regime, senior and super senior citizens do not enjoy any special benefits. The new tax regime applies a uniform tax slab structure to all taxpayers. 

Deductions Under Section 80TTB

1. Section 80TTB offers special tax benefits to senior and super senior citizens.

1. Under this section, senior and super senior citizens can claim a deduction of up to Rs.50,000 on interest earned during the financial year.

1. This interest earned can be from savings accounts, fixed deposits, recurring deposits, and post office deposits held with banks or post offices.

1. This deduction can be claimed under both old and new tax regimes and is applicable in FY 2026-27.

Revised Income Tax Deadlines for Taxpayers

During Union Budget 2026, some revisions were announced in income tax filing dates. They are as follows:

1. The deadline for filing revised ITR has been extended from 31 December to 31 March of given the assessment year, subject to paying a small nominal fee.

1. The regular filing deadline for individual taxpayers using ITR‑1 and ITR‑2 will be the same as 31st July.

1. The revised return deadline for non-audit individuals has been extended to 31st August.