Under the Old Income Tax Regime, elderly persons get pleasure from added tax added benefits and rebates compared to younger taxpayers. However, beneath the New Income Tax Regime introduced in Budget 2020, there is no classification of people on the basis of age.
So, there are many sections beneath the Old Income Tax Regime that provide added benefits and rebates to Senior Citizens.
Some of the tax added benefits and rebates obtainable to senior citizens are –
Taxable Income Slab
The taxable earnings slab for senior citizens amongst 60 and 80 years of age begins at Rs 3 lakh and that of super senior citizens begins at Rs 5 lakh,although the taxable slab for people under 60 years of age begins at an earnings level of Rs 2.5 lakh.
Advance Tax
Senior citizens getting earnings from salary, rent and interest earnings are exempted from paying advance tax, although younger people will need to spend advance tax u/s 211 of the Income Tax Act, if the tax payable in a economic exceeds Rs 10,000.
Standard Deduction
Like their serving counterparts, retired senior citizen personnel of Central and State Governments are also eligible for claiming regular deduction up to Rs 50,000 from their pension earnings.
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Tax Exemption on Interest Income
Senior citizens are eligible to get deduction up to Rs 50,000 u/s 80TTB on interest earned from banks and Post Office on savings account, fixed deposits and recurring deposits. On the other hand, people under 60 years of age get a deduction up to Rs 10,000 only on interest on savings account u/s 80TTA.
Deduction on Health Insurance Premium
Senior citizens get a deduction up to Rs 50,000 u/s 80D on premium paid on well being insurance coverage cover, although people under 60 years of age get deduction up to Rs 25,000 only for the very same.
Apart from the above, senior citizens also get larger tax added benefits / deductions on expenditures made on remedy of specified illnesses and so on.