Income tax benefits for senior citizens



Income tax benefits for senior citizens – According to the Income Tax Act 1961, a number of benefits have been given to a senior citizen. These benefits are either not available to a non-senior citizen or their limit is very less.

In India, such benefits are given to senior citizens to avoid unnecessary tax burden, medical facilities and tax compliance. Therefore, whenever the government prepares the budget , it adds some new benefits for senior citizens and makes the old ones better.

In today's article (income tax benefits for senior citizens), we will discuss about the important benefits available to senior citizens.

Senior Citizen VS Super Senior Citizen – (income tax benefits for senior citizens)

Before discussing about the benefits available to senior citizens under the Income Tax Act, it is very important to know their definitions.

senior citizens

According to the Income Tax Act 1961, any person whose age is more than 60 years but less than 80 years, then such person is called Senior Citizen.

super senior citizen

Any person who is above 80 years of age is called a Super Senior Citizen as per the Income Tax Act.

After knowing the difference between Senior Citizen and Super Senior Citizen, we will discuss about the benefits available to them.

Slab rate benefits - slab rate

The first benefit to be received by Senior Citizen is Slab Rate Benefit .

Income of a non-senior citizen will not be taxable if his total income in a financial year is less than Rs 2 lakh 50 thousand, but in this case an additional exemption of Rs 50 thousand is given to a senior citizen.

This means that the basic exemption limit of 3 lakh will be applicable for a senior citizen. That is, if the total income of the Senior Citizen in a financial year is less than 3 lakhs, then he will not have to pay income tax.

In the case of Super Senior Citizen, this limit is 5 lakhs.

Benefit of medical insurance premium

A senior citizen is exempted from medical insurance premium under section 80D of the Income Tax Act 1961 .

Section a non-senior citizens in 80 D Medical themselves insurance is up to 25,000 of premiums and discounts 25,000 of medical insurance premium offers for their parents, which means that the total can claim exemption of 50,000 Is.

But, if the parents of the non-senior citizens are senior citizens, then deduction of up to 50,000 of their medical insurance premium can be claimed. That is, in this case a total deduction of 75000 (25,000 own and 50,000 parents) can be claimed.

Similarly, if a senior citizen pays his own medical insurance premium, then 50,000 and his parents' premium is also paid, then an additional deduction of 50,000 can be claimed in section 80D, i.e. total 1 Deduction of lakh can be claimed .

Advance Tax Benefits - (income tax benefits for senior citizens)

According to the Income Tax Act 1961, if the income tax liability of a person is more than 10 thousand, then it will be mandatory to deposit advance tax, otherwise interest and penalty will be levied on him.

However, senior citizens are exempted from depositing advance tax , if one condition is met.

That is the condition that the Senior Citizen should not have any income in the Business & Profession Head.

This means that if the tax liability of a senior citizen is more than 10 thousand and he has income from all the heads except the business and profession head, then there is no need to deposit advance tax.

Savings bank account interest deduction benefit –

Interest on savings bank account is taxable under the head “income from other sources”, but deduction can be claimed.

A non-senior citizen is exempted from the savings bank account interest under section 80TTA and senior citizen is exempted from section 80TTB.

However, in section 80TTA, only 10 thousand interest exemption can be claimed by non-senior citizens and 50 thousand interest exemption can be claimed by senior citizens in section 80TTB.

That is, additional deduction can be claimed by a senior citizen of interest of 40 thousand.

offline income tax return

According to the Income Tax Act 1961, it is mandatory for all persons to file income tax return online, but senior citizens are exempted from this.

However, only ITR 1 and ITR 4 can be filed offline (in paper mode) by a senior citizen and no ITR.

TDS limit on fixed deposits

If, you have made a fixed deposit in a bank or post office and its interest is more than 40 thousand in a financial year, then TDS will be deducted at the rate of 10% by the bank or post office on this interest amount.

But, in this case, if you are a senior citizen, then the limit of deducting TDS for you will be 50 thousand applicable. That is, if you are a senior citizen, you will get an additional limit of 10 thousand .
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