WHAT ARE THE CONCESSIONS SENIOR CITIZEN GET UNDER INCOME TAX ACT

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Senior citizens get many special concessions in
income tax, know what are the rules related to it

• VINOD K AGRAWAL ASSOCIATES, CA

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• Senior citizens over the age of 60 are not only
  excused from paying taxes, but they are also
  exempt from paying income tax on their assets and
  profits.
• On income up to Rs 3 lakh, senior citizens are
  exempt from paying any tax.

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exemption in tax limit

• Senior citizens have a Tax exemption limit of Rs
  3 lakh every financial year, whereas the average
  person has a tax exemption maximum of Rs 2.5
  lakh.
• It is Rs 5 lakh for very senior citizens (above
  80 years of age).
• That is, if a senior citizen's annual income is
  less than Rs 3 lakh and no TDS has been deducted,
  he does not need to file an income tax return.
• Similarly, if a very senior citizen's annual
  income is less than Rs 5 lakh, they do not
  required to file an income tax return.

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If the person is over the age of 75, no return is
required.

• Tax returns are not required for anyone beyond
  the age of 75.
• Those who rely only on their pension or bank
  interest income.
• Other source

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Deduction on payment of insurance premium

• Medical insurance premiums paid up to Rs 50,000.
• The limitation for other citizens has been fixed
  at Rs 25,000.

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Deduction for medical treatment expenses

• Senior citizen taxpayers can claim a deduction of
  up to Rs 1 lakh for expenses incurred on the
  treatment of certain conditions under section
  80DDB.
• A person under the age of 60 can deduct up to Rs
  40,000 from their income.

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Deduction on interest earned

• On interest generated from savings bank accounts
  and fixed deposits, senior citizens can claim a
  deduction up to Rs 50,000 (annual).
• This limit has been set at Rs 10,000 for ordinary
  people.

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E-filing not mandatory

• Very senior citizens filing their returns in ITR
  1 or ITR 4 can do so in physical mode. E-filing
  is not necessary.

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Exemption on payment of advance tax

• Every person whose tax due is Rs 10,000 or more
  for a year is required to pay tax in advance
  under section 208 of the Income Tax Act, however
  a senior citizen whose business or profession
  generates no income is exempt under section 207.
• He is exempt from paying advance tax.

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HOPE IT HELPS
VINOD K AGRAWAL ASSOCIATES, CA