Income tax benefits for Senior Citizens. Whether we like it or not, we all worry about the future and
make many choices to save and invest so we can have a secure future. So much of what we are doing
today is not only contributing to our development but also to the development of the country as a
whole.
Therefore,
That’s right; we are talking about the percentage of our income that goes toward our liability to pay
income taxes to the government. Unknowingly, we do this for a long time, until gray locks become
more noticeable.
In other words,
But don't you think there should be some income tax benefits for the elderly who have already
contributed heavily in their younger days? Let’s dive right into some of these benefits, known as the
elite income tax benefits.
You may also like- Automated Income Tax Form 16 Part B for
the Financial Year 2022-23 and Assessment Year 2023-24[This
Excel Utility can prepare at a time 50 Employees Form 16 Part
B]
Who is considered a senior in India?
However, By law, an elderly person is an individual resident between the age group of 60 and 80 at
some point in the past year.
Who are the Super Senior Citizens in India?
A super senior( Above 80 Years) of age or older, is a resident at any time during the past year.
Why should the elderly have special income tax benefits?
For instance, India's history stems from a multicultural life where elders are treated with respect and
affection. They are preserved to accompany the generations through exciting and wonderful
experiences.
Above all, A government working together to preserve customs and morals offers special income tax
benefits for the elderly. Their focus is to relieve them of stress at this stage of life. If you or your aging
parents are planning their finances, then it is important to know what senior citizen tax benefits are
available.
In addition,
8 Special income tax benefits for the elderly
Here are some deductions and benefits that can ease seniors’ financial responsibilities.
1. Benefits from health insurance
After that, Under Section 80 D, senior citizens are provided benefits on the basis of payment of health
insurance premiums up to Rs.50,000/-. Earlier, this deduction limit for payment of health premiums
was Rs.30, 000/- for senior citizens.
You may also like- Automated Income Tax Form 16 Part B for
the Financial Year 2022-23 and Assessment Year 2023-24[This
Excel Utility can prepare at a time 100 Employees Form 16 Part B]
Similarly, For super citizens, the deduction for payment of medical premiums and the actual cost of
their treatment is allowed under Section 80D.
Old age is a time when people over the age of 60 or 80 also need more money for their care. Offering
them income tax deductions is a great way to provide some support and assistance.
2. The basic benefit of the exemption
Everyone in India, who falls below the income bracket for tax purposes, is entitled to some basic
exemptions.
As for senior citizens, the Government of India has fixed this basic exemption limit at Rs.3 lakhs. For
the next plate of 3 lakhs-5 lakhs, the senior citizen has to pay a 5% tax.
Super citizens receive a higher benefit, based on their income and age. For them, this exemption is up to
Rs.5,00,000 in a financial year.
Other than the senior citizens as well as super-citizens, this exemption for ordinary citizens is up to
Rs.2,50,000/- causing them to pay more taxes.
3. Interest Income Preference
After that, The Sr. citizens who are residents of India may be exempted from paying tax on their
interest earned up to Rs. 50,000/- in the financial year.
In addition, This applies to section 80 TTA of income tax and applies to interest earned on a savings
account, bank deposits, and/or postal deposits.
When filing their income tax returns, senior citizens are required to complete Form 15H. The amount of
interest earned above Rs.50,000/- will attract plate rate tax from senior citizens.
You may also like- Automated Income Tax Form 16 Part A&B
for the Financial Year 2022-23 and Assessment Year 2023-
24[This Excel Utility can prepare at a time 50 Employees Form
16 Part A&B]
4. No tax withholding tax
While common people are required to pay advance tax if their tax is Rs.10,000/- or more in a financial
year, senior citizens are exempted from this liability unless they earn income from trade or profession
. Non-business owners still have to pay the self-assessment tax.
Above all, Withholding tax is an advance payment to the Government of India that all citizens have to
pay. Bringing seniors in line isn’t essentially fair.
5. Surcharge for treatment of certain diseases
For instance, The government of India provides compensation to its ordinary citizens for not paying
taxes if the treatment amount is around Rs.40,000/-.
According to Section 80DDB of Income Tax, senior citizens are provided a deduction limit of Rs.1 lakh
if they undergo treatment for any particular disease/critical illness during the financial year.
6. Income tax return of benefits
Super Senior Citizens (above 80 years of age) can file their income tax returns through Sahaj (ITR 1) or
Sugam (ITR 4).
You may also like- Automated Income Tax Form 16 Part A&B
for the Financial Year 2022-23 and Assessment Year 2023-
24[This Excel Utility can prepare at a time 100 Employees Form
16 Part A&B]
They can choose to do this manually or electronically.
7. No tax under Reverse Mortgage Scheme
Therefore, An adult can reverse the mortgage on their home for monthly income. Ownership of the
house stays with the adult and they receive a monthly payment for it. The amount paid to the owner in
installments is exempt from income tax.
8. Standard Deductions from Retirement Income
In conclusion,
However, Seniors are given a standard deduction of Rs.50,000 for their retirement income.
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6) Automated Income Tax Revised Form 16 Part B for the F.Y.2023-24
