Interest deduction for senior citizens: deduction and TDS exemption on deposit interest, limit applied per bank. Availability of interest deduction for senior citizens covers interest from deposits with banks, post offices and co operative banks, including savings and fixed deposits, permitting a deduction up to the statutory ceiling. A matching TDS exemption applies so that banks, post offices and co operative banks do not deduct tax at source on interest paid to senior citizens up to that ceiling, and the exemption threshold is to be computed separately for each paying institution.