Income Tax: Here are 8 I-T benefits for senior and super senior citizens
For zenior citizens, under the new tax regime, the overall income cap is Rs 7 lakh, with a refund of up to Rs 25,000.
Senior persons with taxable income of up to Rs 5,00,000 can seek a tax refund under the old tax regime, which means they do not have to pay any tax. Under the new tax system, the overall income cap is Rs 7 lakh, with a refund of up to Rs 25,000.
In this article, we will discuss about 8 income tax benefits for senior citizens and super senior citizens.
1) IT Limit
Senior persons are obliged to pay tax on income above Rs 3,00,000, whereas this maximum limit was Rs 5,00,000 for super senior citizens under the old tax regime. Ordinary people are not eligible for this benefit since their income is limited to Rs 2,50,000.
2) Rebate on IT filing
Senior citizens have a special exemption under the Income Tax Act, 1961 that taxpayers of 75 years and above are not required to file income tax returns subject to certain conditions.
3) Benefits of standard deduction
The government gives a standard deduction of Rs 50,000 to taxpayers receiving pensions.
4) Tax rebate on interest income
Senior citizens get more exemption on interest income. While a common investor gets tax exemption on interest up to Rs 40,000 annually, senior citizens can avail this benefit on interest up to Rs 50,000.
5) Rebate on health insurance
While a regular insurance customer gets a tax deduction of up to Rs 25,000 on health insurance premium payments, the government gives tax exemption on premiums of Rs 50,000 to senior citizens. This exemption is available under section 80C.
6) Rebate on serious illness treatment
There is section 80DDB under the IT Act, 1961 in which senior citizens are given the option to avail a deduction of up to Rs 1 lakh on the expenses for the treatment of serious illness.
7) Advance tax payment
Senior citizens who do not earn any profit or income from any business or profession and do not have taxable income, do not have to pay advance tax.
8) No tax on reverse mortgage scheme
If a senior citizen gives up any of his residence for monthly income under the reverse mortgage scheme, then the ownership of the property will remain with him, and he will also get tax exemption on the income he gets every month.