Thursday, September 1, 2016

6 Benefits in Income Tax for Senior Citizens

A number of benefits are given in the Income Tax Act of India to the senior citizens apart from general deductions and benefits.

Senior citizen is a resident individual who is of 60 years or more at any time during the previous year.Super senior citizen is a resident individual who is of 80 years or more at any time during the previous year.

Benefit of super senior citizen arises only in case of exemption limits and filing ITR 1/2/2A in paper mode, in all other cases same benefit is available to senior and super senior citizens. The benefits are
Higher exemption limits –
Exemption limits for senior citizens are higher than for other individuals. Exemption limits on which no tax is payable is Rs. 3,00,000 for senior citizens and Rs. 5,00,000 for super senior citizens. This leads to a tax saving of rs. 5,000 to senior citizen and Rs. 25,000 to super senior citizens. For a complete details of tax slabs you can visit here – Income Tax Slab A.y 2017-18

Exemption from paying Advance Tax –
A senior citizen is exempt from paying advance tax if he doesn’t have any business income . They only need to pay self assessment tax before filling income tax returns. Income Tax Department’s official guide
Higher deduction on medical insurance u/s 80D –
Maximum amount of deduction for medical insurance paid is Rs. 20,000 when paid by senior citizen or paid for insurance of parents who is/are senior citizen. Such deduction is maximum of Rs. 15,000 when paid in others circumstances.

Higher tax deduction on treatment of specified diseases u/s 80DDB –
Deduction u/s 80DDB for senior citizen is Rs. 60,000 instead of Rs. 40,000 in other cases.

Super senior citizen can file ITR 1/2/2A in Paper mode –
A super senior citizen filing his ITR in Form ITR 1/2/2A and having total income of more than Rs. 5,00,000 or having a refund claim can file his return of income in paper mode, i.e., for him e filing of ITR 1/2/2A is not mandatory. However, he can file his return electronically if he wishes.

No TDS deduction from interest income –
Senior citizen can submit form no. 15H at the bank branches on which they maintain their Fixed Deposits to avoid deduction of tax (TDS) from interest paid or credited to them.

No comments:

Post a Comment