No ITR filing for senior citizens
A concise explanation of the ITR filing for senior citizens
In the post, we will discuss the ITR filing for senior citizens and some new updates. Let’s look at each of these sections in detail:
Introduction to ITR filing for senior citizens
According to the Income Tax Act of 1961, a senior citizen is an Indian resident who is 60 years of age or older but less than 80 years old. A super senior citizen is an Indian resident who is 80 years of age or older.
The Income Tax Act has special regulations that address the financial aspects of various age groups. Understanding these provisions is crucial for senior citizens when engaging in the ITR filing process, ensuring compliance with tax regulations tailored to their needs.
Conditions to be satisfied
Section 194P of the Income Tax Act, 1961 provides conditions for exempting Senior Citizens from filing income tax returns aged 75 years and above.
- The senior citizen who is a resident indian and has turned 75 years of age or older in the past year.
- Has no other sources of income other than a pension. Still, the bank from which he would get his pension may also provide interest income.
- The central government will announce a list of certain banks that are permitted, which are banking companies that are allowed to be designated banks.
- A declaration must be sent to the selected bank. It will include specifics in the form and manner required and verification.
Income Tax Slab For Senior Citizen
Income Tax Slab Rate for Senior Citizens (FY 2023-24) (Old Regime)
|
Income level |
Applicable |
|
Up to INR 300,000 |
Nil |
|
INR 300,001 to INR 500,000 |
5% of the income exceeding INR 300,000 |
|
INR 500,001 to INR 10,00,000 |
5% of the income exceeding INR 300,000 + 20% of the income exceeding INR 500,000 |
|
INR 10,00,001 and above |
5% of the income exceeding INR 300,000 + 20% of the income exceeding INR 500,000 + 30% of the income exceeding INR 10,00,000 |
Income Tax Slab Rate for Senior Citizens (FY 2023-24) (New Regime)
Benefit for senior citizens under Old Tax Regime
Senior citizens enjoy various tax benefits under the Income Tax Act, 1961 provisions. Here’s a breakdown of these benefits:
- Higher Income Exemption Limit:
Senior citizens must pay tax on income exceeding Rs. 3,00,000, while super senior citizens have a higher limit of Rs. 5,00,000. In comparison, the limit for ordinary individuals is Rs. 2,50,000.
- Standard Deduction:
Those with salary or pension income can claim a deduction of Rs. 50,000.
- Tax Rebate under Section 87A:
Senior citizens with taxable income up to Rs. 5,00,000 can claim a tax rebate and are not required to pay any tax.
- Higher Deduction for Medical Insurance Premium:
Senior citizens can claim a deduction of up to Rs. 50,000 for medical insurance premiums under Section 80D, compared to the Rs. 25,000 available to other individuals, provided it is paid through online banking channels.
- Higher Deduction for Treatment Expenses:
A flat deduction of Rs. 1,00,000 is available under Section 80DDB for medical expenses incurred on specified diseases for self or dependent senior citizen relatives.
- Higher Deduction for Bank and Post Office Interest:
Senior citizens can claim a total deduction of up to Rs. 50,000 for interest earned from savings bank accounts, bank deposits, post office deposits, or cooperative banks under Section 80TTB. In contrast, individuals below 60 can only claim up to Rs. 10,000 on interest earned in savings bank accounts.
- Exemption from Advance Tax Payment:
Senior citizens not earning income from businesses or professions are exempt from paying advance taxes, avoiding interest levies on late payments.
With that, we have come to the end of this post on ITR filing for senior citizens. Share your queries and opinions with us in the comment section below.
FAQ
1.Is a business-person aged above 60 not considered a senior citizen in the income tax system?
Ans: No, they are certainly qualified to be classified as senior citizens.
2.Is the 80C deduction applicable to senior citizens?
Ans: Yes, senior citizens can claim the deduction under section 80C according to the existing tax slabs. However, this deduction is not available under the new tax regime, as taxpayers have the option to choose it.
3.Can I claim a tax deduction for medical expenditures if my parents are dependent on me?
Ans: If both parents are senior or super senior citizens, medical expenses for parents can be claimed as a deduction under section 80D up to Rs. 50,000/-.
4.Can senior citizens submit an ITR offline?
Ans: Super senior citizens above the age of 80 have the option of submitting ITR-1 or ITR-4 forms offline.
