Income-tax Act, 1961Section 194P
- Specified bank computes and deducts full tax for 75+ seniors with only pension and interest from the same bank
- Declaration to the bank; return filing exemption
Applies to FY 2025-26 (AY 2026-27) and earlier years.
IT Act 1961 → 2025 / Section 194P
TDSSection 194P → Section 393
Senior citizens aged 75+ with only pension and interest: bank deducts tax, no return needed
Section 194P of the old Income-tax Act, 1961 · new section 393 under the Income-tax Act, 2025
New reference Section 393(1), Table Sl. No. 8(iii)
Income-tax Act, 2025Section 393(1), Table Sl. No. 8(iii)
- Section 393(1), Table Sl. No. 8(iii): specified bank deducts tax at rates in force
- 'Specified senior citizen' defined in section 402(39)
Applies from tax year 2026-27 (from 1 April 2026).
What changed
Consolidated into section 393.
Practice notes
- The CBDT mapping table shows 8(vii); the enacted table places this at Sl. No. 8(iii).
Frequently asked
Do senior citizens above 75 need to file ITR under the new Income Tax Act 2025?
Not if they have only pension and interest from the same specified bank and the bank deducts tax under section 393(1), Table Sl. No. 8(iii).
What is section 194P called in the new Income-tax Act, 2025?
Section 194P of the Income-tax Act, 1961 corresponds to Section 393(1), Table Sl. No. 8(iii) of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).
What changed in section 194P under the new Income Tax Act?
Consolidated into section 393.
Is section 194P still applicable for FY 2025-26?
Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 194P of the 1961 Act. Section 393(1), Table Sl. No. 8(iii) of the 2025 Act applies from tax year 2026-27.