Income Tax Act 2025: Most important tax-saving sections for senior and super senior citizens

Senior citizens and super senior citizens continue to enjoy several tax reliefs under the Income Tax Act, helping reduce their overall tax burden in FY 2026–27. These benefits are aimed at easing compliance and supporting retirees with medical and interest-related expenses.

This article lists out the most important tax-saving sections for senior and super senior citizens.

• Senior citizens: ₹3 lakh

• Super senior citizens: ₹5 lakh

Section 80TTB: Relief on interest income

Senior and super senior citizens are entitled to a deduction of up to ₹50,000 on interest income earned from:

• Bank deposits, including savings and fixed deposits

• Post office deposits

• Deposits with cooperative banks

This provision offers substantial relief on post-retirement interest income.

Section 80D: Health insurance, medical expenditure and health-related deductions

A deduction of up to ₹50,000 is available for:

• Health insurance premiums paid for self or spouse who are senior or super senior citizens

• Medical expenditure incurred for a senior or super senior citizen where no health insurance premium is paid

Section 80DDB

A deduction of up to ₹1,00,000 is available for expenses incurred on treatment of specified diseases or ailments:

• For self, being a senior or super senior citizen

• For a dependent senior or super senior citizen

Section 80DD: Disability-related deductions

A resident individual or Hindu Undivided Family can claim deduction for maintenance and medical treatment of a dependent with disability, or for contribution to a notified scheme for the maintenance of such dependent:

• ₹75,000 where the disability is at least 40 per cent

• ₹1,25,000 where the disability is severe, being 80 per cent or more

Section 80U

Where the taxpayer himself or herself is a person with disability, an additional deduction is available, subject to prescribed medical certification.

Capital gains exemption under reverse mortgage scheme

Transfer of a residential house property by way of a reverse mortgage, in accordance with a scheme notified by the Central Government, by a senior or super senior citizen:

• Is not chargeable to tax as capital gains

• The loan amount received under such a scheme is also not taxable under any other head of income

Standard Deduction for pension income

Senior and super senior citizens who receive pension income from a former employer are entitled to the standard deduction:

• Up to ₹75,000 under the new tax regime, applicable from assessment year 2025–26 onwards

• Up to ₹50,000 under the old tax regime

Transition to the Income-tax Act, 2025