Neutral impactEconomy
Senior citizens tax myth: Why bank TDS on interest income doesn’t mean you can skip filing ITR
Mint 1 hr ago·29 Sept 2026, 12:25 pm
Many senior citizens believe that if their bank deducts Tax Deducted at Source (TDS) on interest income, they are exempt from filing their Income Tax Return (ITR). However, TDS is merely a tax collected by the bank on your behalf, not a final settlement of your tax liability. The actual tax you owe is calculated based on your total income across all sources, and any TDS already deducted is only an advance payment. Therefore, failing to file an ITR can result in a pending tax payment, even if TDS has been applied.
This requirement is not limited to high earners; it applies to all individuals whose total income exceeds the basic exemption limit, which is ₹3 lakh for those aged 60 and above. Additionally, if you have capital gains, foreign income, or wish to claim tax refunds, filing is mandatory regardless of TDS. The tax department uses ITR data to verify compliance and track the financial activities of all taxpayers, ensuring that no one evades their rightful dues.
Excerpt from Mint
The requirement to file an ITR depends on several factors, including the taxpayer's total income, age, residential status and the nature of income earned during the financial year. Senior citizens enjoy several tax benefits under the income tax rules. However, simply because a bank has deducted tax at source (TDS) on…Read the original at Mint
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