Thank you so much. I thought there was no comment on this message.
However the banks are not accepting this and insist on deducting TDS. Since this is correct (and I had later crosschecked on IT website), banks should not deduct TDS for senior citizens.
I find banks are very slow in passing down IT changes to their staff. And the staff do not implement IT rules unless they get a circular from HO.
For eg. in ICICI bank they insist that the rule reducong the age for senior citizens from 65 to 60 is effective only from July 2012. However the IT ruling came into effect from April 2011. I saw it in last years budget.