India’s income tax framework is based on a progressive taxation system, which means that individuals with higher income levels pay a higher percentage of their income as taxes. The policy also makes provision for certain exemptions to senior citizens and super senior citizens who have retired from their active professional lives.
Senior citizens are those individuals who belong to the age groups of 60 years and above, but below 80 years. Super senior citizens belong to the age group of 80 years and above. Exemptions and benefits offered to this group of taxpayers, under the existing Income Tax laws, have been designed to provide more relief considering their lower earning capacity and higher medical expenses.
The income tax benefits for senior citizens and super senior citizens for the financial year 2023-24 are quite similar, with the main difference being the higher basic exemption limit.
Also Read: Should Senior Citizens File Income Tax Return?
Here’s a comparison of tax benefits available to both groups.
Basic Exemption Limit: For senior citizens, the basic exemption limit is Rs 3,00,000, meaning that if the income of a senior citizen is Rs 3,00,000, or less, they will not have to pay any income tax. For super senior citizens, the basic exemption limit is Rs 5,00,000. This higher exemption limit is provided to super senior citizens to ensure that they have a higher disposable income to meet their medical and other expenses. However, under the New Tax Regime the exemption limit is Rs 2,50,000 for both the categories of taxpayers.
Tax Slabs:
For senior citizens, the tax slab rates are as follows:
– Up to Rs. 3,00,000: No tax
– Rs. 3,00,001 to Rs. 5,00,000: 5 per cent
– Rs. 5,00,001 to Rs. 10,00,000: Rs 10,000 + 20 per cent above Rs. 5 Lakh
– Above Rs. 10,00,000: Rs 1,10,000+ 30 per cent above Rs. 10 lakh
Tax Slabs for super senior citizens:
– Up to Rs. 5,00,000: No tax
– Rs. 5,00,001 to Rs. 10,00,000: 20 percent
– Above Rs. 10,00,000: 1,00,000+ 30 per cent above Rs. 10 lakh
Deductions:
Both senior citizens and super senior citizens are eligible for a higher deduction of Rs 1 lakh under Section 80D for medical insurance premiums. Additionally, they are also eligible for a deduction of Rs 50,000 under Section 80TTB for interest income from savings accounts and deposits.
Tax Rebate:
Senior citizens are eligible for a tax rebate of Rs 12,500 if their total income is less than Rs 5,00,000. Super senior citizens are eligible for a tax rebate of Rs 50,000 if their total income is less than Rs 5,00,000.
Read all the Latest Business News here
Comments
0 comment