New Delhi: It’s time to file Income Tax returns again. India’s income tax framework makes provision for certain exemptions to senior citizens and super senior citizens who have retired from their active professional lives.
Senior citizens are individuals in the age group of 60 and 80 years. Super senior citizens belong to the age group of 80 years and above. This group of taxpayers is provided exemptions and benefits to provide more relief considering their lower earning capacity and higher medical expenses.
The income tax benefits for senior citizens and super senior citizens for the financial year 2023-24 are quite similar, with the main difference being the higher basic exemption limit.
Basic Exemption Limit
For senior citizens, the basic exemption limit is Rs 3,00,000. If the income of a senior citizen is Rs 3,00,000, or less, they will not have to pay any income tax. For super senior citizens, the basic exemption limit is Rs 5,00,000. This higher exemption limit is provided to super senior citizens to ensure that they have a higher disposable income to meet their medical and other expenses. However, under the New Tax Regime, the exemption limit is Rs 2,50,000 for both categories of taxpayers.
Tax slabs
For senior citizens, the tax slab rates are as follows:
– Up to Rs. 3,00,000: No tax
– Rs. 3,00,001 to Rs. 5,00,000: 5 per cent
– Rs. 5,00,001 to Rs. 10,00,000: Rs 10,000 + 20 per cent above Rs. 5 Lakh
– Above Rs. 10,00,000: Rs 1,10,000+ 30 per cent above Rs. 10 lakh
Tax slabs for super senior citizens
– Up to Rs. 5,00,000: No tax
– Rs. 5,00,001 to Rs. 10,00,000: 20 percent
– Above Rs. 10,00,000: 1,00,000+ 30 per cent above Rs. 10 lakh
Deductions
Both senior citizens and super senior citizens are eligible for a higher deduction of Rs 1 lakh under Section 80D for medical insurance premiums. Additionally, they are also eligible for a deduction of Rs 50,000 under Section 80TTB for interest income from savings accounts and deposits.
Tax rebate
Senior citizens are eligible for a tax rebate of Rs 12,500 if their total income is less than Rs 5,00,000. Super senior citizens are eligible for a tax rebate of Rs 50,000 if their total income is less than Rs 5,00,000.
Comments are closed.