Senior citizens can get the benefit of deduction on medical insurance up to Rs 50,000 in a year. In which exemption is available according to section 80D of the Income Tax Act.
The central government gives many concessions in income tax to senior citizens. In which income tax exemption is available on the annual income , as well as the benefit of deduction from other routes is also available. The biggest reason behind this is that the sources of income of senior citizens are very less and the expenditure on their medicine etc. is very high.
Due to which the government gives income tax exemption to senior citizens between the age of 60 to 80 years. Whereas people above 80 years of age are called super senior citizens. Those who get more benefits than senior citizens. If there is a senior citizen or super senior citizen in your house too, then let us know how they can get benefit in income tax.
Income tax exemption limit – At present, people below 60 years of age do not have to pay tax on income up to Rs 2 lakh 50 thousand annually. At the same time, this limit is Rs 3 lakh for senior citizens and Rs 5 lakh for super senior citizens. Which simply means, no tax has to be paid on such income annually.
Rebate on interest earned on investments – Senior citizens make their life savings by making fixed deposits to meet their expenses from the interest earned from them. In such a situation, senior citizens get tax exemption under 80TTB on income up to Rs 50 thousand in a financial year. Whereas tax has to be paid on additional income from this.
Deduction on Medical Insurance Premium – Senior citizens can get the benefit of deduction on medical insurance up to Rs 50,000 in a year. In which senior citizens get exemption according to section 80D of the Income Tax Act.
Tax Exemption on Medical Expenses – We all know that the cost of medicines increases with age, that is why the government has also given more exemption in income tax to senior citizens. The medical expenses incurred by senior citizens during the year can also be availed of tax exemption. Under Section 80DDB of the Income Tax Act, a senior citizen can avail deduction on medical expenses up to Rs 1 lakh.
