Income Tax slabs, rates and exemptions for senior citizens: Know how income tax on pension is calculated
Income Tax Slabs For Senior Citizens, Income Tax Rates For Senior Citizens: Retired employees who fall between 60 and 80 years of age, have the basic exemption limit fixed at Rs 3 lakhs. In the case of super senior citizens (above 80 years), the exemption limit is set at Rs 5 Lakh.
Income Tax Slabs For Senior Citizens, Income Tax Rates For Senior Citizens: Salaried people and pensioners have to mandatorily file their Income Tax Return (ITR). However, the government in Budget 2021-22 introduced a new section in the Income Tax Act, 1961 wherein senior citizens above 75 years are no longer required to ITR if they meet certain criteria.
Here, we will tell you about the income tax slabs, rates and exemptions that senior citizens enjoy.
Income Tax Slabs For Senior Citizens (60 to 80 years)
5 tax saving options other than 80C
Tax On Gratuity, Provident Fund For Retired Employees
The amount received from PF is tax-free for government employees. For non-government employees, PF receipts are exempted from tax if received from a recognised PF after rendering continuous service of not less than 5 years.
Gratuity received on retirement is exempt from tax for government employees.
Whereas, for non-government employees, gratuity is exempt from tax in the following cases:
- Gratuity amount of Rs 10 lakh
- 15 days' salary for each year of service
- Actual gratuity received.
Is Family Pension Taxable?
Family Pension is taxable in India. It is taxed under 'Income from Other Sources.' It is taxable after allowing a deduction of 33.33 per cent or Rs 15000, whichever is less.
Also read- Income tax return filing: What is ITR 1 Sahaj form? Check eligibility and steps to file online
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