Income tax rules, slabs, forms for senior citizens and super senior citizens: Here's your complete guide

Resident Senior citizens and Super Senior Citizens get several income tax benefits under various sections of the Income Tax Act, 1961. Moreover, the calculation of tax for such citizens is also slightly different compared to other categories of taxpayers.   

A resident Indian of 60 years of age or older is considered a senior citizen, and those of 80 years or above are considered as super senior citizens for the purpose of Income Tax Return (ITR) filing. 

Calculation of tax for senior citizens

The tax liability of senior citizens or super senior citizens is calculated based on their income from all the sources like interest from Fixed Deposits, pension, etc.

The tax liability of senior citizens and super senior citizens may differ depending on the tax regime they choose. The taxpayers belonging to these categories can choose the old tax regime or new tax regime like others.  

Income Tax Slab for Senior Citizens under old tax regime

Income                                              Income tax rate

Up to Rs 3,00,000                          Nil

Rs 3,00,001 to Rs 5,00,000          5percent of income over Rs 3,00,000

Rs 5,00,001 to Rs 10,00,000        Rs 10,000 + 20 per cent above Rs 5,00,000

Above Rs 10,00,000                      Rs 1,10,000 + 30 per cent of income over Rs 10,00,000

Income Tax Slab for Super Senior Citizens under old tax regime

Income                                             Income tax rate

Up to Rs 5,00,000                          Nil

Rs 5,00,001 to Rs 10,00,000     20 per cent of income over Rs 5,00,000

Above Rs 10,00,000                      Rs 1,00,000 + 30percent of income over Rs 10,00,000

Apart from the tax slabs, the senior citizens and super senior citizens are required to pay 4 per cent health and education cess on the total tax amount.

Income Tax Slab Rate as Per New Tax Regime for both Senior and Super Senior Citizen

Income                               Income tax rate

Up to Rs. 2,50,000           Nil

2,50,001 to 5,00,000       5percent

5,00,001 to 7,50,000       10percent

7,50,001 to 10,00,000     15percent

10,00,001 to 12,50,000  20percent

12,50,001 to 15,00,000  25percent

Above 15,00,000              30percent

Tax Benefits for Senior Citizens and Super Senior Citizens

Deduction under Section 80C

Under 80C senior citizens or super senior citizens can get deductions of up to Rs  1.5 lakh for eligible investments and expenses such as 5-year fixed deposits, Investment in Equity Linked Savings Scheme (ELSS), Investment in Public Provident Fund (PPF), Life insurance premiums (LIP) and National Saving Certificates, among others.

Benefits under Sections 80C, 80CCC and 80CCD

The senior citizens and super senior citizens can claim deductions upto Rs 1,50,000 combined under sections 80C, 80CCC and 80CCD for investments in life insurance policies, ppf, pension plans of central government,  annuity LIC plans or pensions schemes, among others.  

80 CCD (1B)

A deduction of Rs 50,000 is allowed u/s 80CCD(1B), and further deduction u/s 80CCD(2) is separately allowed for the contributions made by the employer with a limit of 10 percent of the salary. For government employees the limit is 14 per cent of salary.  

Section 80D

Health insurance premiums for senior citizens or super senior citizens qualify as a deduction with an upper limit of Rs 50,000.

Tax benefits of up to Rs 5000 for expenses incurred for preventive health check-ups can be claimed.

Section 80DD

Expenses incurred for the treatment or maintenance of a disabled dependent can be claimed. In such cases if the disability suffered is 40 percent or more, but below 80 percent, a fixed deduction of Rs 75,000 is allowed and for disabilities above 80 percent the deduction is Rs 1,25,000.

Section 80DDB

Expenses incurred in treatment of specific illnesses can be claimed as a deduction under 80DDB. The limit of the deduction for the actual costs incurred is up to a maximum of Rs 1 lakh.

Section 80G

Donations to specified charitable causes and institutions can be claimed as deduction with a limit of 50 percent of the donated amount or 100 percent of the donated amount.

Section 80GGC

Money contributed to a political party or an electoral trust, can be claimed as a deduction with a limit of 100 percent of the donated amount.

Section 80RRB

Royalty income received from patents is allowed as a deduction from taxable income with a max limit of Rs 3 lakhs.

Section 80TTB

Interests earned on deposits in a bank or post office including interest from savings account, fixed deposit schemes and post office deposit schemes can be claimed as a deduction with a max limit of Rs 50,000.

Section 80U

For resident senior citizens or super senior citizens who suffer from a disability or mental retardation, a tax deduction of Rs 75,000 can be claimed and this limit increases to Rs 1.25 lakhs if the taxpayer has severe disabilities.

ITR Forms for Senior Citizens and Super Senior Citizens

To file an income tax return, the following income tax forms can be used by senior citizens and super senior citizens depending on the nature of their income:

ITR 1: For total income of up to Rs 50 lakhs from salary, one house property, other sources of up to Rs 5,000

ITR 2: Total Income more than 50 lakhs, or from two house properties, capital gains or agriculture income exceeding Rs 5,000

ITR 3: Income from Business or Profession

ITR 4: For presumptive income