Senior citizens get pleasure from various revenue tax positive aspects. Both senior citizens among 60 and 80 years of age and super senior citizens above 80 years get such positive aspects in the type of relaxations in tax-filing procedures or larger deductions. Along with that, there are also various monetary instruments that offer you unique positive aspects to senior citizens, such as month-to-month revenue schemes, larger assured returns on investments, and so forth.
However, even though creating their tax-saving investments, senior citizens ought to take into consideration their other desires, such as the lock-in period of an investment, liquidity in case of healthcare or other emergencies, and so forth.
Income of up to Rs 3 lakh is exempted from tax for senior citizens. However, senior citizens can get pleasure from larger standard exemption limit. Hence, if investments are effectively-planned, more can get pleasure from the tax-cost-free revenue of up to Rs 5 lakh.
Senior citizens also get deductions below sections 80C and 80D. Under Section 80C, senior citizens get deductions of Rs 1.5 lakh on instruments like National Savings Certificate, insurance coverage, tax-saver fixed deposits (FDs), notified mutual funds, and so forth. Other than that, normally, senior citizens also get a larger interest price on fixed deposits, of up to 50 basis points.
On the interest revenue from savings or fixed deposits held with a bank, post workplace and so forth., senior citizens can also claim deduction up to Rs 50,000, below section 80TTB.
Senior citizens also get pleasure from larger deduction on overall health insurance coverage premium. For instance, as a senior citizen, you can claim a deduction of up to Rs 50,000 on your overall health insurance coverage premium. If you do not have a overall health insurance coverage policy, you can avail of a deduction of up to Rs 50,000 on your healthcare costs. Additionally, below section 80DDB, on expenditure for the healthcare therapy of specified illnesses, senior citizens can claim a deduction of up to Rs 1 lakh.
A common deduction can also be claimed by a senior citizen of Rs 50,000 on their salary or pension revenue. If a senior citizen does not have any revenue from enterprise and profession, they are also not liable to spend any advance tax.
By submitting Form 15H, senior citizens can also be exempted from tax deducted at supply (TDS), provided that the tax calculated on the person total revenue is zero, or under the exemption limit soon after availing of all deductions.