Answer Book question
Possibly not. Under Section 194P, a resident aged 75 or above whose only income is pension plus interest from the same bank that pays the pension can give that bank a declaration (Form 12BBA); the bank then computes the tax after his deductions and rebate, deducts it, and he is exempt from filing a return. Separately, every senior citizen gets a ₹50,000 deduction on bank and post office interest under Section 80TTB, up to ₹50,000 for health premiums under 80D, and can file Form 15H to stop TDS on interest if the total tax is nil. From April 2025 the TDS threshold on interest for seniors rose to ₹1 lakh.
Possibly not. Under Section 194P, a resident aged 75 or above whose only income is pension plus interest from the same bank that pays the pension can give that bank a declaration (Form 12BBA); the bank then computes the tax after his deductions and rebate, deducts it, and he is exempt from filing a return. Separately, every senior citizen gets a ₹50,000 deduction on bank and post office interest under Section 80TTB, up to ₹50,000 for health premiums under 80D, and can file Form 15H to stop TDS on interest if the total tax is nil. From April 2025 the TDS threshold on interest for seniors rose to ₹1 lakh.
A retired KSEB engineer in Thiruvalla receives pension and FD interest at the same bank, a little over ₹7 lakh a year together. He files Form 12BBA with the branch in April. The bank computes, deducts whatever tax is due after Chapter VI-A deductions and the rebate, and he never files a return again, and never faces a notice for not filing.
Section 194P (Finance Act 2021) applies to a 'specified senior citizen': resident, 75 or more in the year, with pension income and interest income from the same 'specified bank' (notified scheduled banks), and no other income. The bank computes total income, allows deductions under Chapter VI-A and the Section 87A rebate, deducts tax at slab rates, and the individual is relieved of the Section 139 filing obligation.
If there is any other income (rent, capital gains, interest elsewhere), the relief does not apply and a return is due if income exceeds the exemption limit. Section 80TTB: up to ₹50,000 deduction on interest from banks, cooperative banks and post offices for residents aged 60 plus (old regime). Section 80D: up to ₹50,000 for health insurance or, where uninsured, medical expenditure, for seniors (old regime).
Form 15H: a declaration that total tax is nil, to be given each year to each bank to stop TDS under Section 194A; from FY 2025–26 the TDS threshold on interest for seniors is ₹1 lakh per bank per year. The senior-citizen basic exemption in the old regime is ₹3 lakh (₹5 lakh at 80+); under the new regime the rebate makes income up to ₹12 lakh effectively tax-free at the time of writing; verify current figures.
All income sources: any rent or interest at a second bank breaks 194P Whether the pension-paying bank is a notified 'specified bank' (most large banks are) Form 12BBA filed before the bank's deduction cycle starts Form 15H at every bank where interest is paid, each April, if total tax is nil Whether the old or new regime is better given 80TTB and 80D
Filing Form 15H when tax is not nil; it is a false declaration. Also: parents keeping deposits in several banks 'for safety' and thereby losing the 194P simplification; consolidating with the pension bank can remove the return entirely.
Kerala has a large population of pensioners with deposits, and a large population of children abroad trying to file returns for them remotely. 194P at one bank removes that task. Cooperative society deposits are neither covered by 194P nor by the bank's TDS system; interest from them must be reported if a return is due.
Pension ₹4.8 lakh, FD interest ₹2.6 lakh at the same bank, age 76, no other income. Form 12BBA given. Bank computes income ₹7.4 lakh; under the new regime after rebate, tax nil at current thresholds; no return. Same facts with ₹80,000 rent from a shop: 194P does not apply; return due.
Seniors with rental income, capital gains, or interest at multiple banks must file. Anyone wanting a refund of TDS already deducted must file to claim it. The thresholds and rebates change annually.
Consolidate pension and deposits at one notified bank if practical File Form 12BBA (75+) and Form 15H (if nil tax) each April Check Form 26AS / AIS once a year for stray TDS
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Income-tax Act, Sections 194P, 80TTB, 80D, 194A, 197A; CBDT notification of specified banks · Finance Act 2025 changes to TDS thresholds · Forms 12BBA and 15H Last checked: 22 August 2026. Rates, limits and whether you may qualify change. Confirm with the official source before you act. Ask Kerala Rising: Use only general, non-identifying facts. Do not send bank, health, legal, property, identity, account, transaction, or loan documents, screenshots, numbers, OTPs, or passwords over WhatsApp.
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This page is general orientation, not personal insurance, investment, medical, legal, lending, tax, employment, or professional advice. Rules, rates, deadlines, and decisions can change. Confirm the current position with the named official source and use a licensed or qualified professional where your situation requires one. Kerala Rising does not decide whether you may qualify, approve claims, or promise an outcome.