Income Tax Exemption: Major Developments! Senior citizens who are aware of the requirements might avoid paying the 10% TDS on FD interest.

 Income Tax Exemption: Major Developments! Senior citizens who are aware of the requirements might avoid paying the 10% TDS on FD interest.

Only those senior citizens who only get a pension and interest from fixed deposits are exempt from filing an income tax return.


Older people are free from paying taxes, according to the government. Senior citizens are excluded from paying TDS on FD interest under this provision. You must first complete a few crucial tasks if you too wish to avoid paying 10% TDS.

Seniors should provide their bank with a self-declaration at the start of the fiscal year. These comprise Forms 15G and 15H.

The taxpayer may ask the bank to stop deducting tax from the interest if the taxable income is below the threshold that qualifies for tax-free income. Seniors who do not want to file income tax returns and are 75 years of age or older can send Form 12BBA to their bank as of this year.

The discount will go to whom?

Only those senior citizens who only get a pensions and interest from fixed deposits are exempt from submitting an income tax return. The second requirement is that both the fixed deposit and the pension be held in the same bank. The Form 12BBA requires the completion of numerous fields. Details of deductions under sections 80C to 80U, tax exemptions under sections 87A, and the total income from interest on fixed deposits and money market accounts are among them.

The bank determines the taxpayer's total income in accordance with the Central Board of Direct Taxes when the form is submitted. For this, he takes into account the tax exemptions and deductions provided by section 87A and subtracts tax from the final income at the applicable slab rate.


The CBDT has made sure that filling out this form will be simple. For this, it has requested that banks assist senior residents with form completion.

The bank will essentially file Income Tax Returns (ITR) for senior citizen taxpayers. This CBDT step is excellent. Actually, because the income tax laws are always changing, senior individuals have trouble filing ITRs.

Justification for submitting a 12BBA

Senior citizens do not have to worry about getting their tax deductions for FD interest back when they complete Form 12BBA, which is another benefit. In accordance with income tax regulations, if a senior citizen 60 years of age or over receives interest income totaling more than Rs 50,000 in a fiscal year, the bank is required to deduct 10% TDS from that amount.

Money from taxpayers who pay income taxes at rates of 5% and 10% will be used for TDS. For instance, if a person receives interest income of Rs. 7 lakh, 10% TDS would result in a loss of Rs. 70,000. The taxpayer must pay Rs 52,500 in tax if he submits Form 12BBA. Those who fail to submit Form 12BBA will receive a refund of Rs 17,500.