ITR filing 2024: As the deadline for income tax filing approaches, it is crucial for taxpayers categorised as senior and super senior citizens to understand the specific provisions tailored for them. For the financial year 2023-24, tax-saving investments made by March 31, 2024, will be considered for income tax returns. Many seniors mistakenly believe they need not file returns if tax is deducted at source (TDS) on income received. This is not right. The Income Tax Department has outlined exemptions, deductions, and benefits specifically aimed at senior and super senior citizens per the Income Tax Act, 1961.
To assist senior citizens in availing of these benefits, the income tax department has introduced specialized income tax return (ITR) forms to facilitate the filing process and ensure the receipt of eligible tax exemptions.
Senior citizens must choose the appropriate Income Tax Return (ITR) form based on their income category when filing taxes. Senior citizens, individuals above 60 years of age, are eligible for a basic exemption limit set at Rs 3 lakh under the Income-Tax Act, 1961. On the other hand, super senior citizens, aged 80 and above, enjoy a higher exemption limit of Rs 5 lakh. For taxpayers opting for the new tax regime as per Section 115BAC of the Income-Tax Act, the basic exemption limit remains at Rs 3 lakh.
Read More: ITR Filing Last Date This Month; Here’s How To File Your Income Tax Return Online For Free
Which ITR form should senior citizens opt for
Pensioners whose earnings are below Rs 50 lakh in the relevant financial year are eligible to utilise Sahaj, also known as ITR-1 for their tax filing.
Individuals receiving income from property, other sources, or capital gains are advised to select ITR-2 for filing their taxes. Pensioners who earn income from businesses or professions must consider using either ITR-3 or ITR-4 for filing their taxes.
ITR 1: If a senior citizen or super senior citizen’s income is from salary or pension, rental income, or other income such as interest, etc.
ITR 2: Besides salary or pension or rental income, if they have capital gains from the sale of shares, property, etc.
ITR 3: For those with income from a business or profession (except for income subject to presumptive taxation)
ITR 4: For those having income from business or profession that is subject to presumptive taxation under sections 44AD, 44ADA, etc.
Read More: How to file ITR online – Steps for e-filing income tax return
Taxable income
Seniors should ensure comprehensive income assessment by including salary, pension, interest from savings, fixed deposits, rental income, and capital gains. A holistic approach to financial evaluation is vital for informed decision-making.
Senior citizens sometimes fail to report all sources of income in their Income Tax Returns (ITRs), such as interest, commissions, or dividends. It is essential to disclose all incomes, irrespective of the amounts or tax deductions involved. Failing to report these incomes may be considered under-reporting, potentially resulting in further examination and penalties imposed by the tax authorities.
Deductions and exemptions
Senior citizens are entitled to increased deduction limits and exemption benefits in comparison to other taxpayers. It is important for senior citizens to factor in these higher limits for deductions and exemptions when calculating their taxable income.
For example, senior citizens can benefit from additional deductions for things like health insurance premiums under Section 80D, interest income from deposits under Section 80TTB, and investments in the Senior Citizens Savings Scheme under Section 80C.
Similarly, a standard deduction of up to Rs 50,000 is available against salary and pension income under Section 16(ia) of the I-T Act.
Tax Calculation
Once the taxable income is determined, apply the applicable tax rates to calculate the tax liability. It is pertinent to note that senior citizens and super senior citizens enjoy a higher basic exemption limit of Rs 3 lakhs and Rs 5 lakhs, respectively.
However, no such benefit of higher basic exemption limit is available under the new tax regime. The applicable tax rates for Financial Year 2023-24 under the old tax regime and new tax regime (default) are as follows:
| Income Slabs | Old Tax Regime | Income Slabs | New Tax Regime (Default tax regime) | |
| Tax Rate for Senior Citizens(60-80 years) | Tax Rate for Super Senior Citizens(80 years and above) | Tax Rate for Senior Citizens & Super Senior Citizens | ||
| Up to ₹3,00,000 | Nil | Nil | Up to ₹3,00,000 | Nil |
| ₹3,00,001 to ₹5,00,000 | 5% | Nil | ₹3,00,001 to ₹6,00,000 | 5% |
| ₹5,00,001 to ₹10,00,000 | 20% | 20% | ₹6,00,001 to ₹9,00,000 | 10% |
| Above ₹10,00,000 | 30% | 30% | ₹9,00,001 to ₹12,00,000 | 15% |
| ₹12,00,001 to ₹15,00,000 | 20% | |||
| Above ₹15,00,000 | 30% |
