No tax payable for income upto Rs 3 lakh

The income tax exemption limit for senior citizens is Rs 3 lakhs, while for others it is Rs 2.5 lakhs only.

Benefits on fixed deposits

On bank fixed deposits senior citizens receive an extra interest rate of 0.5 per cent. Interest rates could vary when it comes to company fixed deposits, but it is certainly more than other individuals.

Benefit on TDS

Senior citizens have to submit form 15H for claiming TDS exemption on their fixed deposits.

Advance tax and senior citizens

Senior citizens who own business and may not have business income are exempted from paying advance tax.

A good scheme

The Senior Citizens Savings Scheme is only meant for senior citizens and provides a decent interest rate of 9.2 per cent.