Income Tax Returns 2024: Income Tax return filing is a mandatory exercise for all Indian citizens, salaried, non-salaried, senior citizens. According to the Income Tax department, an individual resident who is 60 years or above in age but is less than 80 years at any time during the previous year is considered as Senior Citizen for Income Tax purposes. A Super Senior Citizen is an individual resident who is 80 years or above, at any time during the previous year.
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Senior citizens and super seniors receive higher tax benefits than general taxpayers as mentioned in the provisions of the Income-Tax Act of 1961.
Here’s an analysis of tax slabs for senior citizens under the Old Tax Regime and New Tax Regime
Old Tax Regime
The basic exemption limit for senior citizens is Rs 3 lakh, while it is Rs 2.50 lakh for general taxpayers. For super senior citizens, the limit is Rs 5 lakh in a given fiscal year.
As per the Income Tax Act 1961, senior citizens whose estimated tax liability in a financial year is Rs 10,000 or more that is liable to pay advance tax. Senior citizens need not pay any advance tax, given that they do not have income under the “Profits and Gains of Business or Profession” head.
Seniors can also claim a standard deduction of up to Rs 50,000 against pension income, just like general taxpayers.
> Under the Old Tax Regime, senior citizens whose annual income is up to Rs 3 lakh have no tax liability.
> For those whose income is more than Rs 3 lakh and less than Rs 5 lakh, the tax liability is 5 per cent.
> It is to be noted that under the Old Tax Regime if the taxable income is up to Rs 5 lakh, the tax liability is nil for relief u/s 87A.
> For income of more than Rs 5 lakh to Rs 10 lakh, the tax rate is Rs 10,000 plus 20 per cent of the amount above Rs 5 lakh.
> Above Rs 10 lakh, the tax rate is Rs 1.10 lakh plus 30 per cent of the amount above Rs 10 lakh.
> A surcharge will be applicable if the taxable income is over Rs 50 lakh, the percentage may vary from 10-37 per cent, subject to marginal relief.
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> There is also a health and education cess, which is 4 per cent of income tax plus a surcharge.
For Super Seniors
> For income up to Rs 5 lakh, there is zero tax.
> For income over Rs 5 lakh up to Rs 10 lakh, it is 20 per cent above Rs 5 lakh.
> For income of above Rs 10 lakh, the tax rate is Rs 1 lakh plus 30 per cent above Rs 10 lakh.
> The surcharge and health and education cess is same as senior citizens.
New Tax Regime
The New Tax Regime has more tax slabs for the senior and super senior citizens. Going by the Section 115BAC of the New Tax Regime, the income tax rates and the slabs are the same for senior and super-senior citizens.
> For income up to Rs 2.5 lakh, there is no tax.
> For income of more than Rs 2.5 up to Rs 5 lakh, which is 5 per cent above Rs 2.5 lakh.
> Over Rs 5 lakh up to Rs 7.5 lakh, the tax amount is Rs 12,500 plus 10 per cent above Rs 5 lakh.
> Over Rs 7.5 lakh up to. 10 lakh, it is Rs. 37,500 plus 15 per cent above Rs. 7.5 lakh.
> Over Rs 10 lakh up to Rs 12.5 lakh, the amount is Rs 75,000 plus 20 per cent above Rs 10 lakh.
> For income of more than Rs 12.5 lakh up to Rs 15 lakh, it is Rs 1.25 lakh plus 25 per cent above Rs 12.5 lakh.
> Above Rs 15 lakh, it is Rs 1,87,500 plus 30 per cent above Rs 15 lakh.
Under the new tax regime, senior citizens can claim of a maximum deduction of Rs. 50,000 under section 80D for health insurance premiums. If the expenses incurred for a dependent senior citizen, the entitlement is Rs 1 lakh in a financial year.
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Senior and super-senior citizens taxpayers are allowed a maximum deduction of Rs 50,000 under section 80TTA for interest income from savings bank accounts. It is Rs 10,000 for general taxpayers.
