Senior citizens in India receive income from a variety of sources including rent, pensions, fixed deposit accounts, savings interest etc. The revenue is taxed in India if it surpasses the income threshold. When I had to file the IT return of my father, I came across this concept. So let me walk you through the senior citizen IT slab.
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Taxes that apply to people who are over age 60 but under 80:
Total Revenue |
Modified Income Tax System (without exemption and deduction) |
Maximum 2.5 lakhs |
NIL |
Between 2,50,001 and 3 lakhs |
5% |
3,00,001 to 5 lakhs rupees |
5% |
Ranging from 5,00,001 to 7.5 lakhs |
10% |
Between 7,50,001 and 10 lakhs |
15% |
Between 10,00,001 and 12.50 lakhs |
20% |
Between 12,50,001 and 15 lakhs |
25% |
From ₹15,00,001 |
30% |
Now you know what is the income tax slab for senior citizen.
What is the income tax slab for the super senior citizens?
Taxes that apply to people who are over age 80:
Total Revenue |
Modified Income Tax System (without exemption and deduction) |
Maximum 2.5 lakhs |
NIL |
Between 2,50,001 and 5 lakhs |
5% |
3,00,001 to 5 lakhs rupees |
5% |
Ranging from 5,00,001 to 7.5 lakhs |
10% |
Between 7,50,001 and 10 lakhs |
15% |
Between 10,00,001 and 12.50 lakhs |
20% |
Between 12,50,001 and 15 lakhs |
25% |
From ₹15,00,001 |
30% |
This is all about the income tax slab for super senior citizen.
What deductions are available to seniors under the new income tax system?
According to the Union Budget 2020–21, senior individuals are eligible for the following deductions:
1) Pension:
For pensions, there's a standard deduction of Rs.5000 each year. This remains true for annuity-based pensions that are taxed similarly to salary income. It is covered by Section 80D.
2) Medical Insurance
Senior citizens may exclude up to Rs.50000 each year for their medical costs or health insurance premiums under Section 80D. Additionally, as defined previously, dependent elders may claim a discount for severe diseases up to a total of Rs.1 lakh. This is governed by Section 80DDB.
So you are now aware of the senior citizen IT slab.
Read More: Can a senior citizen get a home loan? Can a senior citizen open a PPF account? Which bank is best for fixed deposits for senior citizens? What is a senior citizen saving scheme?Your Feedback Matters! How was this Answer?
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What is the income tax slab for senior citizen?
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2022-09-14T21:08:05+00:00 2022-09-14T21:08:06+00:00Comment
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