India Citizen having age of 60 years is called senior citizen and above 80 year of age is called super senior citizen as per income tax act. In old age due to less income sources government give some tax reliefs to senior and super senior citizens which are as follows:
Tax exemption limit
- For Senior citizens who are aged between 60 to 80 years is Rs. 3 lakhs
- For Super Senior Citizens this limit is Rs. 5 lakhs.
Section 207 (No Advance Tax)
Senior citizens are also exempted from the payment of advanced tax even if their income tax payable exceeds Rs. 10000. This benefit is given u/s 207 of the Income Tax Act, 1961
Section 80TTB
Not only Income earned from interest on bank savings deposits is exempt but also fixed/recurring deposit schemes and deposits in post office will be exempted from income tax up to Rs.50,000 u/s 80TTB. This is an exclusive section for Senior Citizens
TDS u/s 194A
TDS is not required to be deducted if the Interest is upto Rs. 50000/- from the bank. This limit is Rs. 40000/- for Non Senior Citizens
Section 80DDB
Medical expenses incurred due to critical illnesses like cancer, motor neuron disease, AIDS etc. for senior citizens is Rs. 1 lakh against Rs. 40000 for non senior citizens
Mediclaim u/s 80D
Limit for senior citizens is Rs. 50000/- against Rs. 25000/- for non senior citizens.
ITR filing in Paper form/offline:
Super senior citizens above 80 years of age can file income tax return in paper form if income does not include Income from Business & Profession.
These are the exclusive benefits which can be claimed by senior citizens and save substantial amount of Income Tax.
Thanks