Senior citizen's query: Paying 10% TDS on income from SCSS, POMIS, FD. How can I get it back?

Senior citizen Sanjay Rebati Biswas is earning interest on his investments in Fixed Deposit (FD), Senior Citizen Savings Scheme (SCSS), and Post Office Monthly Income Scheme (POMIS). However, the interest is credited to his savings account after a deduction of 10% TDS. He is wondering whether he can get the TDS back.

In a recent email, Mr Biswas shared his concern as follows:

"Presently, myself is getting interests from FD, SSCC, POMIS after deduction of tax at 10%. How can I get back the deducted amount?"

Well, senior citizens like Mr Biswas can get the TDS back by filing the Income Tax Return (ITR). The Income Tax Department issues a tax refund if the tax paid by an individual exceeds his/her tax liability during the financial year.

There are various situations in which a refund can be issued. Let's have a look at some of these situations:

In FY 2024-25, the basic exemption limit for senior citizens is ₹3 lakh under both the new and old tax regimes. If a senior citizen has paid TDS but his total income is below this limit, then he can get the total tax paid as a refund.

In FY 2025-26, the basic exemption limit under the new regime will be ₹4 lakh under the new regime and ₹3 lakh under the old regime for senior citizens.

One should note that TDS payment can be avoided in case a senior citizen's total income is below the basic exemption limit. For this, s/he should submit Form 15H to the bank/post office, preferably at the start of the financial year.

Under the new tax regime, there is no tax on a total income of up to ₹7 lakh, including income from interest, in FY 2024-25.