Tax deductions: In India, super senior citizens are exempted from filing income tax returns. But, it is mandatory for people between 60 and 80 years of age to file returns. But, if a person is 75 years or more in age and has income only from pension or interest, then there are easy rules for him.
Filing income tax returns seems to be a difficult task for most taxpayers. This problem is more with senior citizens. In India, super senior citizens are exempted from filing income tax returns. But, filing returns is mandatory for people between 60 and 80 years of age. But, if a person is 75 years or more in age and has income only from pension or interest, then there are easier rules for him. Instead of filing income tax returns, he can file Form 12BBA through the bank in which his pension is deposited.
Many types of relief to senior citizens
The Income Tax Department provides many reliefs to senior citizens and super senior citizens in tax matters. Under the old regime of income tax, senior citizens also get some special deductions. It is important for senior citizens to know about this. This can help them a lot in filing income tax returns.
Exemption limit for senior citizens
In the old regime of income tax, the basic exemption limit of income tax for people above 60 years of age is Rs 3 lakh. For people above 80 years of age, the exemption limit is Rs 5 lakh. This means that if the income of a senior citizen is less than or up to this limit, then he does not need to pay tax. Apart from this, senior citizens with income up to Rs 5 lakh in the old regime can claim tax rebate, which can reduce their tax to zero.
Rs 75,000 standard deduction for senior citizens
In the new regime of income tax, the exemption limit for all taxpayers for the financial year 2024-25 is Rs 3 lakh. In this regime, people whose total income is up to Rs 7 lakh get a rebate of Rs 25,000 under section 87A. This reduces their tax to zero. In the old regime, pensioners get a standard deduction of Rs 75,000 instead of Rs 50,000. In the old regime, deduction is available under section 80C in Senior Citizens Savings Scheme (SCSS). If a person retired from the job is 55 years old, then he can invest in this scheme. Defense employees can invest in it at the age of 50.
Rebate on health policy premium too
Senior citizens get more deduction on health policies than others. Under section 80D, they get a deduction of Rs 50,000 per year on health policy premium. Senior citizens are exempted from tax on interest income up to Rs 50,000 from savings and fixed deposits. Interest income above this amount will be taxable.
Most Read Articles:
- Canara Bank FD Interest Changed: Big news! Canara Bank changed the interest rates on FD, know what’s the new rate now
- PNB Bank FD Interest Changed: Big news! Punjab National Bank changed the interest rates on FD, know what’s the new rate now
- Credit Card Link UPI: Link your credit card to UPI from home, know step-by-step guide
