Mr S retired 7 years ago. Pension ₹35k/month, FDs across 4 banks earning ~₹1.8L interest, one rental flat ₹15k/month. His son in the US handles his ITR, sends him a screenshot every July. "Am I leaving anything on the table?"
Most pensioners do. The post-60 lane has specific extra benefits — and most filers don't use them.
- Senior (60-79): basic exemption ₹3L (old regime). Super-senior (80+): ₹5L.
- Section 80TTB: deduction up to ₹50,000 on bank interest (savings + FD + RD + bonds). Replaces 80TTA for seniors.
- Section 80D: ₹50k for own health insurance (senior). Up to ₹1L if both you and parents are senior.
- No advance tax if senior + no business / profession income.
The senior-specific tax breaks
80TTB ₹50k
The big one
Bank interest deduction up to ₹50k (savings + FD + RD + bonds). At 30% slab = ₹15,000 tax saved. Most pensioners miss it.
80D ₹50k
Health insurance
Health insurance premium for self (senior). Up to ₹50k. If you cover senior parents too — ₹1L total.
No advance tax
If no business income
Senior resident with only pension / interest / rent — fully exempt from advance tax. Settle via self-assessment at filing.
Mr S's actual ITR — let's compute
Annual income FY 25-26:
- Pension: ₹4,20,000 (taxed as "salary")
- FD interest: ₹1,80,000
- Rent (net of 30% std ded): ₹1,26,000
- Health insurance premium: ₹45,000
Tax under old regime
Old regime works well thanks to 80TTB + 80D + standard deduction stacking. New regime: ₹3L basic exemption is the same; no 80TTB/80D in new regime, so probably higher tax unless income is very simple.
What to gather before filing
- Form 16 from employer (for pension) — if from a pension-paying employer
- Bank FD interest certificates for all banks
- Form 26AS + AIS — cross-check TDS
- Rent receipts / agreement (if any rental property)
- Health insurance premium receipt
- Donation receipts (if any 80G claim)
Which ITR form
👉 ITR-1 (Sahaj): Pension + 1 house property + interest. Most basic. Most pensioners qualify.
👉 ITR-2: Multiple house properties, capital gains, foreign assets.
👉 ITR-3: If you have business income (e.g., consulting post-retirement).
Super-seniors (80+) with income only from pension + interest can file ITR via paper form at the local IT office. Online not mandatory. Useful for those uncomfortable with the portal.
15H — avoid the TDS in the first place
Banks deduct 10% TDS on FD interest > ₹50k for seniors (₹40k for non-seniors). If your total taxable income is below the basic exemption (₹3L old / ₹3L new for seniors), you can submit Form 15H to the bank to prevent TDS.
👉 Submit at start of FY (April)
👉 One form per bank
👉 Only if total income below taxable threshold
👉 Avoids the chase for refund
The pensioner's ITR is actually the simplest — but the easiest to leave money on. 80TTB alone covers most seniors' bank-interest tax. Use it.
Quick answers
Pension from former employer = "Income from Salary" (and gets standard deduction ₹50k/₹75k). Pension from LIC annuities or family pension = "Income from Other Sources".
Yes, fully taxable. Bank deducts TDS if interest > ₹50k/year. Counts toward 80TTB ₹50k deduction.
Then you have business income — advance tax kicks in, ITR-3 required, can opt for presumptive 44ADA. The senior advance-tax exemption no longer applies.
Not mandatory if income below exemption. But recommended — paper trail, refund of any TDS, often needed for visa / loan / pension verification.
Family pension is "Income from Other Sources" with a separate standard deduction (1/3 of pension or ₹15k, whichever lower). Differs from own pension treatment.
When you might want help
The pensioner's ITR is straightforward; help adds value when there are multiple bank FDs across banks (TDS reconciliation), rental income with vacant periods, or post-retirement consulting / freelance income that triggers ITR-3.
Want your senior ITR done?
Fixed-fee filing. We submit 15H to banks at FY start, claim 80TTB + 80D, ensure no refund left behind.