Know that senior citizens get many special concessions in income tax

 

People above 60 years of age i.e. senior citizens not only get the benefit of income tax exemption but also get special relief from income tax on investments and returns. Elderly citizens do not have to pay any income tax on income up to Rs 3 lakh.

 

Exemption in tax limit under 80C limit: The tax exemption limit for old citizens in a financial year is Rs 3 lakh, while a common man gets tax exemption only up to Rs 2.5 lakh. For very senior citizens who are above 80 years of age, it is Rs 5 lakh. That is, if the annual income of a senior citizen is up to Rs 3 lakh and TDS has not been deducted, then he need not file an income tax return. Similarly, very senior citizens need not file income tax returns if they do not have an annual income up to Rs 5 lakh.

 

If the age is more than 75 years then no return is required: Those above 75 years of age are not required to file tax returns. There is no any need to file ITR for people above 75 years of age who are dependent only on pension or bank interest income. However, if they are earning income from other sources as well, whether it is rental income or anything else, then they will be required to file ITR as usual.

 

Deduction on payment of insurance premium: Under section 80D of the Income Tax Act, medical insurance premium up to Rs.50,000 paid by senior citizens is allowed as a deduction. For other taxpayers, this limit has been fixed at Rs 25,000.

 

Deduction for expenses incurred on medical treatment: Under section 80DDB, senior citizen taxpayers can claim deduction up to Rs 1 lakh for expenses incurred on treatment of certain specific diseases. A person up to the age of 60 years can take a deduction of up to 40 thousand rupees on this.

 

Deduction on interest earned: Senior citizens can claim deduction up to Rs 50,000 (annual) on interest earned from savings bank accounts and fixed deposits. For common taxpayers, this limit has been fixed at Rs 10,000.

 

E-filing not mandatory: Very senior citizens taxpayers filing their returns in ITR 1 or ITR 4 can do so in paper mode. Its e-filing is not necessary for him.

 

Exemption on payment of advance tax: According to section 208 of the Indian Income Tax Act, every person whose tax liability is Rs 10,000 or more for a year, he has to pay tax in advance, but under section 207 he is a senior citizen. Whose business or profession is not an income, he does not have to pay advance tax.