Whether we have a tendency to find it irresistible or not, we all worry concerning the long run and significantly create decisions to save lots of money and invest cash in order that we will have a secure tomorrow. Consequently, a lot of what we do nowadays contribute to not solely our growth, but also the country’s overall growth too. That’s right, we have a tendency to talk concerning the share of our earnings that go towards our responsibility of paying financial gain taxes to the government while not even realizing it, we do that for a protracted time, up to till the gray strands become a lot apparent.

However, don’t you’re thinking that there must be some Income Tax advantages for seniors who’ve already given lots within the younger days? Let’s get straight into it to speak concerning a number of these advantages, called Income Tax advantages for Senior citizens.

WHO IS TAKEN INTO ACCOUNT AS A SENIOR & SUPER SENIOR CITIZEN IN INDIA?

A person who is 80 years of age as of the day of the previous fiscal year is said to be a senior citizen. A person who is above 80 years of age as of the day of the previous fiscal year is said to be super senior citizens.

WHY MUST SENIOR CITIZENS HAVE SPECIAL INCOME TAX BENEFITS?

Elders are paid respect and love as India’s history hails from a culturally enriched background. They are taken care of to guide the generations on each happy and odd event. The government operating in partnership to keep the culture and ethical values intact provide special Income Tax advantages for senior citizens. Their plan is to alleviate them from stress in this section of life. If you or your senior citizens are coming up with their funds, then it’s crucial to grasp concerning the tax advantages for senior citizens which will be availed.

8 SPECIAL INCOME TAX ADVANTAGES FOR SENIOR CITIZENS

As per the Tax consultant in Chennai here are a number of the deductions and advantages that can ease out money responsibilities for senior citizens.

1. ADVANTAGES BELOW MEDICAL INSURANCE

Under section 80D, the senior citizens are offered a profit on account of payment of the insurance premium up to Rs.50,000. For senior citizens earlier, this limit of deduction for health premium payment was Rs.30,000. A Tax Consultant in
Chennai states that, for super citizens, under section 80D, the deduction for the payment of medical premium moreover because the actual expenses incurred on their treatment are allowed. Old age is the time once individuals higher than sixty or eighty years would wish tons of cash for his or their treatment moreover. Giving them a deduction profit below Income Tax could be a good way to supply some quantity of support and facilitate.

2. THE ELEMENTARY EXEMPTION PROFIT

Every individual in India, who falls below the income tax bracket to pay tax, is allowed for a few elementary waivers. While for the senior citizens, the government has come upon this basic exemption limit up to Rs.3 lakhs. For the following 3 lakhs-5 lakhs block, a senior citizen can have to be compelled to pay a tax of 5%. Super citizens get the next advantage, considering their financial gain and age. For them, this release is up to Rs.5,00,000 in one fiscal year. Other than the senior or super citizens, this exemption for normal citizens is up to Rs.2,50,000 solely that leads them to pay a lot of taxes.

3. PRIVILEGE ON INTEREST FINANCIAL GAIN

The senior citizens who are residents of India can have to be compelled to pay no tax on their interest attained up to Rs.50,000 during a fiscal year. Applicable below Section 80TTA of Income Tax, this can take into consideration interest attained within the savings checking account, deposits during a bank, and/or deposits in post-office. When filing their ITR, the senior citizens can have to be compelled to fill the form 15H. The number of interest attained over Rs.50,000 would attract the tax as per the block rate of senior citizens.

4. NO ADVANCE TAX

While normal people have to be compelled to pay an advance tax if their liabilities are Rs.10,000 or a lot during a fiscal year, senior citizens are free from this burden unless they create financial gain from business or profession. Those not owning a business solely have to be compelled to pay the Self-Assessment Tax. Advance Tax is a quantity paid prior to the Indian Government that all citizens are certain to pay. Putting senior citizens within the same bracket is not basically truthful.

5. ALLOWANCE ON THE TREATMENT OF SPECIFIED DISEASES

The Government of India offers an allowance to its normal citizens to not pay tax if the value of treatment is near Rs.40,000. Under section 80DDB of the Income Tax, senior citizens get a deduction limit of Rs.1 lakh if they undertake any treatment for specified disease/critical unwellness during a fiscal year.

6. INCOME TAX COME ADVANTAGES

Super Senior citizens (individuals higher than eighty years) will file for his or her Income Tax return through either Sahaj (ITR 1) or Sugam (ITR 4). They will value more highly either manually or electronically.

7. NO TAX BELOW THE REVERSE MORTGAGE THEME

A senior citizen could reverse mortgage any of his accommodation to acquire monthly earnings. The possession of the property remains with the senior citizen and that they are given monthly payments for it. The number paid in installments to the owner is exempted from Income Tax.

8. CUSTOMARY DEDUCTIONS FROM PENSION FINANCIAL GAIN

Senior citizens are allowed a customary deduction of ₹50,000 on account of their pension income.

INCOME TAX SLABS FOR SENIOR CITIZENS – FY2019-2020

TAX SLABSTAX RATEHEALTH AND EDUCATION CESS
INCOME UPTO Rs. 3 LAKHS––
INCOME BETWEEN Rs. 3 LAKHS AND Rs. 5 LAKHS5%4% of income
INCOME BETWEEN Rs. 5 LAKHS AND Rs. 10 LAKHS20%4% of income
INCOME MORE THAN Rs. 10 LAKHS30%4% of income

INCOME TAX SLABS FOR SUPER SENIOR CITIZENS – FY 2019-2020

TAX SLABSTAX RATEHEALTH AND EDUCATION CESS
INCOME UPTO Rs. 5 LAKHS––
INCOME BETWEEN Rs. 5 LAKHS AND Rs. 10 LAKHS20%4% of income
INCOME MORE THAN Rs. 10 LAKHS30%4% of income