In India, a person above the age of 60 is classified as a Senior Citizen, but you become a Super Senior Citizen when you cross 80. With a view to making life simpler for senior citizens, the government has given them a variety of tax benefits. Here are the 7 key benefits for senior citizens that you must be aware of.
1. The basic 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.
2. Section 207 : 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
3. Section 80TTB : Income earned from interest on bank savings deposits, 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
4. TDS u/s 194A 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
5. Benefits u/s 80DDB : Medical expenses incurred due to critical illnesses like cancer, motor neuron disease, AIDS etc. for all senior citizens, is Rs. 1 lakh against Rs. 40000 for non senior citizens
6. Deductions u/s 80D : Limit for senior citizens is Rs. 50000/- against Rs. 25000/- for non senior citizens.
7. Return in Form Form : 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 7 exclusive benefits which can be claimed by senior citizens and save substantial amount of Income Tax.
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