Retired, 67, pension of ₹6 lakh and FD interest of ₹5 lakh. Which regime, do I pay advance tax, and can I stop the bank deducting TDS?

New regime: ₹11 lakh less the ₹75,000 standard deduction (pension is salary income) is ₹10.25 lakh, which is within the ₹12 lakh limit for the section 87A rebate under the slabs that apply from FY 2025-26, so tax is nil. Under the old regime you would get the ₹50,000 standard deduction and ₹50,000 under 80TTB for interest, leaving ₹10 lakh and tax of around ₹1.1 lakh, so the new regime is clearly better. You can pick the regime in the return each year; nothing needs to be filed in advance.

TDS: banks deduct 10% on interest above ₹1 lakh a year for senior citizens (the limit was doubled from ₹50,000 on 1 April 2025). Since your tax liability is nil, submit Form 15H to each branch at the start of the year and the bank will not deduct at all. For the deductions already made, file the return and the refund is usually credited within a few weeks of e-verification.

Advance tax: a resident senior citizen with no business or professional income is exempt from advance tax under section 207, so no instalments are due even in a year where tax arises.