# Senior citizens: Bank TDS on interest does not exempt you from ITR 2026-09-29T13:57:00+00:00 | Governance | Indian Opinion Desk Corroboration: 1 independent outlet A bank deducting tax at source (TDS) on interest income does not automatically exempt a senior citizen from filing an Income Tax Return (ITR). The obligation to pay tax and the obligation to file a return are separate under income tax rules. Filing is required when total income, before deductions, exceeds the basic exemption limit: Rs 2.5 lakh under old regime for those under 60, Rs 3 lakh for ages 60-80, Rs 5 lakh for 80-plus, and Rs 4 lakh under new regime for all ages. A conditional exemption applies to resident senior citizens aged 75 or above, under Section 393 of the Income-tax Act 2025 or Section 194P of the 1961 Act. To qualify, the person's income must consist solely of pension and interest from the same specified bank from which the pension is received, and they must submit Form No. 125 to that bank. The bank then calculates and deducts the tax, removing the need to file a separate return. If the senior citizen has interest income from a different bank or any other source, the exemption does not apply. Age alone does not remove the filing requirement. Seniors must verify whether all conditions are met before assuming they are exempt from filing. ## Indian Opinion Analysis The tax system treats filing and paying as two separate obligations, so TDS alone never ends the requirement to file. The special exemption for those 75 and above is narrow: it only covers pensioners whose entire interest income comes from the same bank that pays the pension. Anyone with a fixed deposit at a second bank, rental income or a family pension from a different source is outside its scope. The CBDT has not broadened this relaxation since it was introduced, so most senior citizens fall back on the standard rule: if total income exceeds the basic exemption limit, ₹3 lakh under old regime for ages 60-80, ₹4 lakh under new regime, a return must be filed. For the current assessment year, the deadline to file an ITR without late fee is 31 July 2025. ## Coverage - livemint.com Tags: CBDT, Income Tax Act, ITR, senior citizens, TDS Canonical: https://indianopinion.org/senior-citizens-bank-tds-on-interest-does-not-exempt-you-from-itr/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/senior-citizens-bank-tds-on-interest-does-not-exempt-you-from-itr/#story-in-brief