Senior citizen income tax slabs FY 2026-27: Old vs new regime rates and benefits

Income tax provisions for senior citizens and super senior citizens under the Income Tax Act, 2025, continue to differ under the old and new tax regimes. For the financial year 2026-27, taxpayers aged 60 years and above must evaluate exemption limits, slab rates, and regime-specific benefits carefully, particularly in light of the announcements made in the Union Budget 2026.

Classification of taxpayers based on age

As per the Income Tax Act, resident individuals are classified into the following categories:

• Individuals below 60 years of age

• Senior citizens, being individuals aged 60 years or more but less than 80 years at any time during the tax year

• Super senior citizens, being individuals aged 80 years or more at any time during the tax year

• Under the old tax regime, higher basic exemption limits apply to senior citizens and super senior citizens:

• Every individual, being a resident in India, who is of the age of 60 years or more but less than 80 years at any time during the tax year, is entitled to a basic exemption limit of ₹3,00,000

• Every individual, being a resident in India, who is of the age of 80 years or more at any time during the tax year, is entitled to a basic exemption limit of ₹5,00,000

• The new tax regime does not provide any enhanced basic exemption limit for senior or super senior citizens.

Income tax slabs under the old tax regime for senior citizens (60 years to below 80 years)

In the case of every individual, being a resident in India, who is of the age of sixty years or more but less than eighty years at any time during the previous year, the rates of income tax shall be as follows:

• Where the total income does not exceed ₹3,00,000: Nil

• Where the total income exceeds ₹3,00,000 but does not exceed ₹5,00,000: 5 per cent of the amount by which the total income exceeds ₹3,00,000

• Where the total income exceeds ₹5,00,000 but does not exceed ₹10,00,000: ₹10,000 plus 20 per cent of the amount by which the total income exceeds ₹5,00,000

• Where the total income exceeds ₹10,00,000: ₹1,10,000 plus 30 per cent of the amount by which the total income exceeds ₹10,00,000

Income tax slabs under the old tax regime for super senior citizen (80 years and above)

In the case of every individual, being a resident in India, who is of the age of eighty years or more at any time during the previous year, the rates of income tax shall be as follows:

• Where the total income does not exceed ₹5,00,000: Nil

• Where the total income exceeds ₹5,00,000 but does not exceed ₹10,00,000: 20 per cent of the amount by which the total income exceeds ₹5,00,000

• Where the total income exceeds ₹10,00,000: ₹1,00,000 plus 30 per cent of the amount by which the total income exceeds ₹10,00,000

Income tax slabs under the new tax regime for senior and super senior citizens

Under the new tax regime, age-based exemption limits do not apply. The same slab rates apply to all individual taxpayers, including senior citizens and super senior citizens:

• Where total income does not exceed ₹4,00,000: Nil

• Where total income exceeds ₹4,00,000 but does not exceed ₹8,00,000: 5 per cent

• Where total income exceeds ₹8,00,000 but does not exceed ₹12,00,000: 10 per cent

• Where total income exceeds ₹12,00,000 but does not exceed ₹16,00,000: 15 per cent

• Where total income exceeds ₹16,00,000 but does not exceed ₹20,00,000: 20 per cent

• Where total income exceeds ₹20,00,000 but does not exceed ₹24,00,000: 25 per cent

• Where total income exceeds ₹24,00,000: 30 per cent

Most exemptions and deductions available under the old tax regime are not available under the new tax regime.

Under the new tax regime, income up to ₹12.75 lakh (including standard deduction) from salary, pension, or other assets is effectively tax-free due to the applicable slab structure and rebate provisions.

Senior citizens and income tax after Budget 2026

Key compliance relief announced in Union Budget 2026

While presenting the budget, Finance Minister Nirmala Sitharaman stated: “For the ease of taxpayers holding securities in multiple companies, I propose to enable depositories to accept Form 15G or Form 15H from the investor and provide it directly to various relevant companies.”

This measure allows investors to submit Form 15G or Form 15H only once to the depository, instead of submitting the form separately to each company paying interest or dividends.

For FY 2026-27, the income tax framework for senior citizens and super senior citizens remains largely unchanged.