08
Oct
7 Special Income Tax Benefits for Senior & Super Citizens Assessee
India’s income tax law provided some special benefits to pamper senior citizens & very senior citizens with many tax benefits. these benefits are allowable to the resident assessee only.
- Benefits under medical Insurance Under section 80 D: Senior Citizens Medical Insurance premium amount Deduction Rs 50,000/- Can also claim preventive health check-ups deduction of Rs 5000/-, which is within the overall limit of Rs 50,000/-
- Basic Tax Exemption Slab: The government has set up a basic exemption limit for senior and super senior citizens.
Senior Citizens (60 Years old or < 80 Years Old)
Taxable Income | Tax Rate |
Up to 3 Lakh | NIL |
Rs 3 Lakh to 5 Lakh | 5% |
Rs 5 Lakh to 10 Lakh | 20% |
More Than 10 Lakh | 30% |
Super Senior Citizens (80 Years old or more)
Taxable Income | Tax Rate |
Up to 5 Lakh | NIL |
Rs 5 Lakh to 10 Lakh | 20% |
More Than 10 Lakh | 30% |
- More deduction for Interest Income: Interest income up to Rs 50,000/- is allowable as a deduction under Chapter VI A Section 80 TTB. The deduction is available against the Interest income from post office account, saving account, deposit in a bank.
- No Advance Tax Payment: Senior citizens, who are 60 Years or older, and do not run a business, are exempt from paying advance tax.
- Allowance on the treatment of specified disease: Under section 80 DDB senior citizens get a deduction of Rs .1 lakh if they under mistake any treatment for specified disease / critical illness
- Manual filing possible in ITR: Super senior citizens (individuals above 80 years) can file income Tax Returns manually or electronically.
- Standard Deduction from Pension Income: Senior citizens are allowed a standard deduction of Rs. 50,000 on account of their pension income