No ₹25 Lakh Tax Exemption for Senior Citizens, Says FM
The government has no plans to increase the income tax exemption limit for senior citizens aged 70 and above to ₹25 lakh, according to Finance Minister Nirmala Sitharaman.
In a recent reply in the Lok Sabha, the Finance Minister confirmed that no such proposal is currently under consideration. She explained that the government’s policy is to simplify the tax structure by moving away from exemptions and deductions in favor of a new tax regime with lower rates and more liberal tax slabs.
Benefits Under the New Tax Regime
While a higher exemption limit isn’t being introduced, the new tax regime already offers significant benefits that can make income for many tax-free.
- The basic exemption limit is ₹4 lakh.
- Income up to ₹12 lakh can be tax-free for most individuals due to a higher tax rebate under the new regime.
Tax Collected from Senior Citizens Has Doubled
The Finance Minister also provided data showing a significant increase in tax collection from senior citizens over the last five years. The amount collected has more than doubled from ₹25,969 crore in the Assessment Year (A.Y.) 2020-21 to ₹61,624 crore in A.Y. 2024-25.
| Assessment Year (A.Y.) | Tax Collected (in ₹ Crores) |
| 2020–21 | 25,969.63 |
| 2021–22 | 28,090.77 |
| 2022–23 | 39,537.42 |
| 2023–24 | 48,152.79 |
| 2024–25 | 61,624.23 |
For the current assessment year (A.Y. 2025-26), the last date to file your Income Tax Return for non-audit cases is September 15, 2025.