The question
1 answer
Practising chartered accountants at ERPCA · 27 Aug 2026
In short
Under the new regime you owe nothing, and you can stop the TDS with a Form 15H.
New regime: ₹11 lakh less the ₹75,000 standard deduction (pension is salary income) is ₹10.25 lakh, which is within the ₹12 lakh limit for the section 87A rebate under the slabs that apply from FY 2025-26, so tax is nil. Under the old regime you would get the ₹50,000 standard deduction and ₹50,000 under 80TTB for interest, leaving ₹10 lakh and tax of around ₹1.1 lakh, so the new regime is clearly better. You can pick the regime in the return each year; nothing needs to be filed in advance.
TDS: banks deduct 10% on interest above ₹1 lakh a year for senior citizens (the limit was doubled from ₹50,000 on 1 April 2025). Since your tax liability is nil, submit Form 15H to each branch at the start of the year and the bank will not deduct at all. For the deductions already made, file the return and the refund is usually credited within a few weeks of e-verification.
Advance tax: a resident senior citizen with no business or professional income is exempt from advance tax under section 207, so no instalments are due even in a year where tax arises.
Next step
File ITR-1 for FY 2025-26 now to recover this year's TDS, and hand in Form 15H at the bank in the first week of April every year. At 75 you could use section 194P and let the bank compute and deduct the tax, which removes the return-filing requirement altogether.
General guidance on the facts given, not an engagement. Law as on the date of the answer.
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