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  1. Senior Citizens tax slabs, rates, standard deduction in new and old tax regimes for FY 2025-26, FY 2024-25

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Senior Citizens tax slabs, rates, standard deduction in new and old tax regimes for FY 2025-26, FY 2024-25

Upstox

3 min read | Updated on February 02, 2025, 07:52 IST

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SUMMARY

New senior citizen tax slabs and rates 2025-26: Finance Minister Nirmala Sitharaman announced several measures for senior citizens in Budget 2025. The government has revised the tax slabs under the new tax regime, making income up to ₹12 lakh tax-free

senior citizen tax slab

Last year, the finance minister announced an easier tax filing process for senior citizens aged 75 years. | Representational image/source: Shutterstock:

Senior Citizens tax slabs and rates 2025-26: Union Budget 2025 revised the tax rates and slabs for individuals, including senior citizens, opting for the new tax rate.
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The revised rates announced by the Finance Minister will be applicable for FY 2025-26 (AY 2026-27). Budget 2025 has, however, made no changes in the old tax regime.

Following are the new and old tax regimes for FY 2025-26 (AY 2026-27) and FY 2024-25 (AY 2025-26) for senior citizens:

Senior citizen tax slabs for FY 2025-26 (AY 2026-27) under new tax regime as per Budget 2025

Income range (₹)Tax rate
0 - 4 lakhNil
4 - 8 lakh5%
8 - 12 lakh10%
12 - 16 lakh15%
16 - 20 lakh20%
20 - 24 lakh25%
Above 24 lakh30%

Senior citizen tax slabs for FY 2025-26 (AY 2026-27) under old tax regime as per Budget 2025

Tax slabsTax rate
Up to ₹3,00,000Nil
₹3,00,001- ₹5,00,0005%
₹5,00,001 to ₹10,00,00020%
Above ₹10,00,0030%

Senior citizen tax slabs for FY 2024-25 (AY 2025-26) under old tax regime

Tax slabsTax rate
Up to ₹3,00,000Nil
₹3,00,001- ₹5,00,0005%
₹5,00,001 to ₹10,00,00020%
Above ₹10,00,0030%

Senior citizen tax slabs for FY 2024-25 (AY 2025-26) under new tax regime

Tax slabsTax rate
Up to ₹3,00,000Nil
₹3,00,001- ₹7,00,0005%
₹7,00,001 to ₹10,00,00010%
₹10,00,01 to ₹12,00,00015%
₹12,00,001 to ₹15,00,00020%
Above ₹15,00,00030%

Ahead of Budget 2025, senior citizens were optimistic about expected tax relief measures to alleviate the burden of rising inflation. Given that retired individuals rely heavily on their savings, experts had recommended initiatives to ease their financial burden.

What FM announced in Budget 2024

Finance Minister Nirmala Sitharaman had announced several measures for senior citizens in Budget 2024. The government increased the standard deduction for family pensioners to ₹25,000 from ₹15,000 to give much-needed relief to retired persons.

Pensioners and senior citizens also benefitted from the enhanced standard deduction limit of ₹75,000 under the new tax regime. The revised tax slabs under the new regime in the previous Budget also benefitted the taxpayers above the age of 60 years.
The standard deduction under the old tax regime is ₹50,000 only for pensioners. For family pensioners, the standard deduction limit in old regime is ₹15,000.
Last year, the finance minister also announced an easier tax filing process under Section 194P for senior citizens aged 75 years and above. Senior citizens, who are receiving income solely from pensions and interests on savings, have been exempted from filing income tax returns. Doing away with the need for additional filing, specified banks were proposed to handle tax deductions.

As per the Income-tax Act, 1961, taxpayers in the age group of 60 to 80 years have been categorised as senior citizens and those above 80 years are treated as super senior citizens.

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About The Author

Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

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