It has been Indian culture to care for and respect the older generation (unlike in the present day practice of dumping them in an old age home). Government of India has provided certain benefits to them under the Income Tax Act.
As per Income Tax Act, any person over 60 yrs of age is considered to be a senior citizen. It is essential that the person completes 60 years of age at any time during the year. For example, any person born on or before31. March 1963 can claim the benefits for the financil year 2022-23 corresponding th the Assessment year 2023/24.
They have been offered certain exclusive benefite under the Act.
- Advance Tax:
Such of those senior citizans having incomes under salary (pension) House property (rental income) other sources (Interests on Fixed deposits, etc) are exempted from the quarterly advance tax. Interestingly, if the person has income under the head profits and gains business or profession, he cannot avail this facility. - Enhanced exemption limits:
Senior citizens enjoy a higher basic exemption limit of Rs.3,00,000 as against Rs.2,50,000 by normal citizens Tax rates remain the same after that level . - Increased exemption of interests earned:
Normal cizens can claim an exemption u/s 80 TTA upto Rs.10,000 only on savings bank accounts and not on interest fron Fixed deposits. Senior citizens can claim exemption upto Rs.50,000 including inerest earned on fixed deposits. - Beneft of medical expenses
The limit of S.80 D for senior citizens is Rs.50,000. This may be for buying medical insurance for self or spouse, or dependants, or for meeting normal medical expenses. - Exemption from filing the return of income
If a senior citizen has only pension and interest on Fixed deposits, he need not even file the return of income in case the pension received and the fixed deposit are at one place. - Super senior citizens
Any person over 80 years of age is called as a super senior citizen. All the above exemptions are available to such super senior citizens also. Additionally, the basic exemption limit for such persona is enhanced to Rs.5,00,000
