According to the law, a senior citizen is the one who has been more between the age of 60 to 80 years. The one who has been crossed 80 years of age to be considered as the super senior citizens.
In our India, according to its history and its enriched background where elders are given respect and love. They are even taken care of generation to generation only for guidance in both happiness and odd events.
IT For Senior Citizens
Our governments are always working to keep the earlier day’s cultural and moral values intact just by offering them the special offers of income tax benefits for senior citizens. The only main intension behind this is to keep them relive from stress in that phase of life. It is required to know the benefits of tax for senior citizens if the senior citizen is planning for their funds.
BENEFITS OF INCOME TAX FOR SENIOR CITIZENS ARE:
Given below are some of the benefits and deductions which may relieve from the responsibilities of finance for senior citizens.
- The Elementary Exemption Benefits
In India, the one is allowed for some elementary waivers if they fall under the income bracket to pay tax.
Super senior citizens get full advantage of it b considering their age and income for them this waiver is of Rs.500000 in only one financial year.
While for senior citizens the basic exemption limit is Rs.300000 set up by the government. For the next slab of Rs.300000 to 5,00,000, they are needed to pay 5% of tax.
- No Advance Tax
The advance tax is an amount paid to the government of India in advance which is mandatory to be paid by all the citizens of India.
The senior citizens are required to pay the tax only if they earn from some business or the professions. They are only needed to pay the self-assessment tax if they are not owning a business, while the ordinary individual has to pay the tax if the liability of tax is more than Rs.10000 in a financial year.
Income Tax Return Benefits
The super senior citizen can file for the return of their income tax by either Sugam(ITR 4) or by Sahaj(ITR 1). They can choose to do it either manually or electronically.
- Standard Deduction From Income Of Pension
Standard deduction of Rs.50000 is allowed by the senior citizen from the account of their pension income.
- Benefits Under Medical Insurance
Benefits on accounts of payment of the health insurance premium are up to Rs.50000 is offered to the senior citizen under section 80 D.
For super senior citizens under section 80D, they are allowed for the deduction for payments of medical premiums as well as the actual expenses incurred.
This is the only way to offer some sort of help and support for them in that age, in which they need a lot of money for their treatments and medical issues as well.
- Privilege on the Income of interest
The senior citizens are not required to pay the tax on their interest earned up to Rs.50000 (this is only for the residents of India)
Under section 80 TTA of income tax, this will be taken into account interest earned in the saving bank account deposits in a bank and or even deposits in the post office.
The senior citizens are required to fill the form 15H while filing their income tax returns. As per the slab rate of senior citizens the amount of interest earned over Rs.50000 would attract the tax.
Allowance On the Treatment of Specified Diseases
Under section 80DDB of the income tax, the senior citizens get a deduction limit of Rs.100000 only if they undertake treatment for a specific disease or critical illness in a financial year.
The government of India gives an allowance for its ordinary individual to not to pay any tax if the cost of treatment is below Rs.40000
- No Tax Under The Reverse Mortgage Scheme
The ownership of the property remains with the senior citizens and they will be given the monthly payments for it. The senior citizens may even reverse mortgage any of their accommodation to make monthly income. The income tax is exempted if the amount paid in installments to the owner.
NOTE: The senior citizen can earn free income up to s.300000 and the super senior citizen above the age of 80 years can earn free income up to Rs.500000
BASIC KEY POINTS:
- The limit of Rs.50000 is individually computed for every bank for a financial year.
- A senior citizen is an individual resident who is aged 60 years or even more.
- As per the applicable slab rate of senior citizens the amount of interest earned over Rs.50000 would attract the tax.
- Under the section 194A of the income tax act, the Banks cannot deduct the tax at source or TDS from payments of interest on deposits of up to Rs.50000 to the senior citizens.
- Under section 80 TTB interest income from company fixed deposits (FD) or bonds or even NCDs will not qualify for relief.