Persons above sixty but under the age of 80 and who essentially are citizens of the country are widely considered as senior citizens for income tax purposes under the Income Tax Act of 1961.<\/p>\n
Even though someone is older, a non-resident has not deemed a senior citizen under the Income Tax Act.<\/p>\n
A senior citizen’s income might be actually earned in a number of different ways. Senior citizens typically make their income from the following sources:<\/p>\n
The exemption limit is the proportion of income over which a taxpayer is not compelled to pay income tax.<\/p>\n
The baseline tax exemption threshold for regular individual taxpayers, up to which they are not actually deemed necessary to pay any tax, is currently set at Rs. 2.50 lakhs. The baseline exemption ceiling for Senior Citizens, on the other hand, is established at Rs. Three lakhs.<\/p>\n
To summarize, a resident senior citizen currently receives an additional advantage of Rs. 50,000 in the form of a considerably greater exemption limit as compared to other taxpayers.<\/p>\n
Following the Central Board of Direct Taxes explicit instruction and guidelines, specific cases involving senior citizens may not be investigated and prosecuted unless an assessment is required based on solid grounds.<\/p>\n
As per section 207, a senior citizen is exempt from paying advance tax if they possess no income under the heading “Profits and Gains of Business or Profession.”<\/p>\n
They purely and simply have to continue to pay the Self-Assessment (SA) Tax, which is determined after the total tax liability for the financial year is established.<\/p>\n
Individuals with an overall income that is lower than Rs.5 lakh are eligible for benefits for the Section 87A rebate programme. Taxpayers with yearly revenue of up to Rs.5 lakh would be eligible for an Rs.2,000 rebate. In conclusion, the Tax due will be Rs.23,000.<\/p>\n
Individuals with a total income of higher than Rs.5 lakh would have to end up paying Rs.25,000 plus an extra 20% tax.<\/p>\n
Senior citizens must submit an income tax return in order to receive a tax refund successfully.<\/p>\n
Deductions that are Available for Senior Citizens<\/p>\n
These are generally the biggest source of income for senior people. Senior citizens can deduct up to Rs.10,000 from their savings bank account interest.<\/p>\n
In addition, the interest on post office accounts and fixed deposits are tax-deductible up to Rs.50,000. Banks are entitled to deduct Tax Deducted at Source (TDS) from such interest revenue only if it exceeds Rs.50,000 for the financial year.<\/p>\n
Form 15H can be filed so that TDS is not deducted on total income that is less than the tax exemption ceiling.<\/p>\n
This is fully covered by Section 80TTB.<\/p>\n
Senior citizens can claim tax benefits under Sections 80C, 80D, and 80DDB of the Income Tax Act, in addition to taking advantage of a significantly larger exemption limit.<\/p>\n
Other schemes include:<\/p>\n
Yes, senior citizens can access the online tax filing service as well.<\/p>\n
Section 139 of the I-T Act of 1961 requires people whose taxable profit exceeds the basic exemption level in a given accounting period year to file an ITR.<\/p>\n","protected":false},"excerpt":{"rendered":"
Who Precisely Are Senior Citizens? Persons above sixty but under the age of 80 and who essentially are citizens of the country are widely considered as senior citizens for income tax purposes under the Income Tax Act of 1961. Even though someone is older, a non-resident has not deemed a senior citizen under the Income …<\/p>\n