Senior Citizen Tax IndiaInterest on deposits for senior citizens
Section 153 of the Income-tax Act, 2025 (read on 13 November 2026) gives a deduction for interest on deposits with a bank, a co-operative bank or a post office. A person under sixty gets the whole interest on savings accounts up to ₹10,000 (time deposits excluded). A senior citizen gets the whole interest on deposits of any kind, including fixed deposits, up to ₹50,000.
| Interest in the year | Under 60 (savings only) | 60 or more |
|---|---|---|
| ₹8,000 | ₹8,000 | ₹8,000 |
| ₹25,000 | ₹10,000 | ₹25,000 |
| ₹60,000 | ₹10,000 | ₹50,000 |
| ₹1,20,000 | ₹10,000 | ₹50,000 |
Tax at source on the interest
Section 393(1), Table serial 5(ii): for interest from such deposits the threshold printed in the table is ₹1,00,000 for a senior citizen and ₹50,000 for others. The deduction in section 153 and the threshold for tax at source are separate rules.
Common questions
Does the deduction cover fixed deposit interest?
For a senior citizen yes: section 153(2)(b) allows the whole interest up to ₹50,000 on deposits of any kind including time deposits. For others section 153(2)(a) covers savings account interest only, up to ₹10,000.
Is the ₹50,000 per bank?
The Act gives the limit per assessee as a maximum on the interest, not per bank.
Source
- The Income-tax Act, 2025, as published in the Gazette of India Extraordinary: section 2(100) (senior citizen), 126 (health insurance and medical expenditure), 128 (specified diseases), 153 (interest on deposits), 393 (tax deducted at source, Table serial 5) and 402(39) (specified senior citizen).
Rules read on 13 November 2026 from the Income-tax Act, 2025. The Act may have been amended since it was enacted. This site is independent, not connected with the Income Tax Department or any bank, and gives arithmetic, not tax advice.