In our Indian Culture, we always respect the one bigger than us i.e. our Elders. Therefore, we take the Blessing of God and then of our Elders before starting anything new. The same culture is preserved by the Income Tax Department . Remembering their increased age, the Income Tax Department in the law has given some concessional privileges to Senior and Super senior citizens. We shall discuss some of the concessions available to them in the Income Tax law:
According to the Income Tax Act, a person who is 60 years of age or above, but less than 80 years of age, is defined as a Senior citizen and a person who is 80 years of age or above as a Super senior citizen. The concessions in the Income Tax Act for such Senior and Super senior citizens are as follows:
1. From April 1, 2021, the Super Senior citizens whose income is only pensions and interest received on bank deposits and saving accounts is from one bank only and the tax from such income is deducted by the bank properly, then such senior citizens no longer need to file their income tax returns. For this, such citizens need to inform the bank that “you have no income other than pension and interest on deposits”.
2. The taxable income limit for other citizens is Rs. 250,000 whereas for senior citizens the taxable income limit is Rs. 3,00,000 which is more by Rs.50,000/- than other citizens. And for super senior citizens limit is Rs. 500,000 which is more by Rs.2,50,000/- than other citizens.
3. If the income tax on your income is more than Rs. 10,000, you need to pay the advance income tax in full in the same financial year. But this provision does not apply to senior citizens. For this concession, the income of senior citizens should not include any income from business or occupation.
4. From the financial year 2018-19, it has become mandatory for every registered taxpayer to file his income tax return online or through computerized means. But if you are a Super senior citizen and you have income other than income from business or occupation, you do not have to file your return electronically. You can also file your income tax return by submitting in Income Tax Department
5. Under the Income Tax Act, other citizens get a deduction of up to Rs 10,000 for interest earned on a savings account in their bank or post office. This deduction is not on interest accrued on the bank or postal deposits. However, senior citizens get a deduction of up to Rs 50,000 on interest earned on the bank or postal deposits and interest earned on savings account balances.
6. Under the Income Tax Act, for other citizens, the deduction for premiums paid for a health insurance policy is up to Rs 25,000. However, for senior citizens, the maximum deduction for such expenses is Rs 50,000. Also, under the same provision, senior citizens who do not have a health insurance policy and have incurred medical expenses for health, the deduction for such expenses is up to Rs. 50,000.
7. As per the provisions of the Income Tax Act, the deduction for treatment of certain diseases authorized by the government is up to Rs. 40,000 for other citizens and the maximum deduction for such diseases is Rs. 100,000 for senior citizens.
Under the new tax system, which has been in place since the fiscal year 2020-21, there is no classification of senior and super senior citizens. Therefore, like other citizens, the taxable income limit is only up to Rs 2.5 lakh.
Also, the above deductions from taxable income cannot be taken under the new tax system. Senior or super senior citizens should file their income tax returns with these important points in mind while filing their income tax returns.
