Income Tax Benefits: In the country, many types of income tax benefits are given to senior citizens under the Income Tax Act, 1961. The government gives tax exemption to senior citizens to make tax filing easier for them and to provide them with comfort in old age on their lifetime earnings. Here we are telling you about seven such tax benefits which are given to the category of senior citizens i.e. taxpayers above 60 years of age.
1. Tax exemption limit
Senior citizens get more tax exemption in both the tax regimes. In both the regimes, income up to Rs 3 lakh is tax free, whereas for general taxpayers this limit is Rs 2.5 lakh. The limit for super senior citizens is Rs 5 lakh.
2. Exemption from filing ITR
Senior citizens have a special exemption under the Income Tax Act, 1961 that taxpayers of 75 years and above are not required to file income tax returns subject to certain conditions.
3. Benefit on standard deduction
The government gives a standard deduction of Rs 50,000 to taxpayers receiving pension, whereas those receiving family pension get a pension of Rs 15,000.
4. Exemption on interest income
Senior citizens get more exemption on interest income. While a common investor gets tax exemption on interest up to Rs 40,000 annually, senior citizens can avail this benefit on interest up to Rs 50,000.
5. Discount on health insurance
While regular insurance customers get tax deduction of up to Rs 25,000 on health insurance premium payment, the government gives tax exemption on premium of Rs 50,000 to senior citizens. This exemption is available under section 80C.
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