Senior Citizens Tax Exemption: The phase of filing income tax returns in the financial year 2024–25 is going on rapidly. At such a time, the discussion of tax saving measures is also gaining momentum. Today we are going to give tips to the elderly to save tax.
How to save Tax: Lakhs of people have filed ITR for the financial year 2024–25, but some people are wondering how to reduce tax, especially those who are 60 years of age or above. For such people, there is a special section 80TTB in the Income Tax rules, which gives tax exemption. But this exemption is available only in the old tax system. Let’s know how to get exemption
What is Section 80TTB
Section 80TTB is a facility of the Income Tax Act which gives tax exemption on interest income to senior citizens (60 years of age or above). If you have a savings account, fixed or recurring deposit in a bank, post office or cooperative institution, then up to Rs 50,000 can be exempted from the interest earned on it, but this benefit is available only in the old tax system. If you choose the new tax system, then the exemption of this section will not be available. Therefore, it is important to choose the right tax system while filing returns, especially if your income is related to interest.
Experts’ advice Tax experts say that senior citizens should remain in the old tax system so that they can take advantage of 80TTB. This exemption is not available if you choose the new tax system. No relief in the new tax system If you choose the new tax system, then the exemption of 80TTA and 80TTB is not available. Therefore, before filing the return, you should think which tax system is good for you.
In how many days does the refund come? If you file the income tax return correctly and on time, and also e-verify it, then usually the refund is received within 5 to 10 days. Some people get their refund in just one day! But if there is a mistake in the return, or documents have to be verified, then it can take 4 to 5 weeks for the refund to arrive. That is why filing quickly and correctly is very important.
