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Tax Benefits for Senior Citizens: Senior citizens (above 60 years of age) and very senior citizens (above 80 years of age) get certain tax benefits. There must be information about them.
Tax Benefits for Senior Citizens: Senior citizens and very senior citizens get some additional tax benefits as compared to common people. Know what those benefits are. Explain that according to the Income Tax rules, people in the age group of 60 to 80 years are considered as senior citizens and people above 80 years of age are called super senior citizens.
Know about the tax benefits available to senior citizens and super senior citizens:-
- Common citizens get tax exemption only up to Rs 2.5 lakh, that is, no tax has to be paid till this income. For senior citizens, the tax exemption limit in a financial year is Rs 3 lakh. Whereas for very senior citizens (over 80 years of age), it is Rs 5 lakh.
- Under Section 80D of the Income Tax Act, medical insurance premium up to Rs 50,000 paid by senior citizens in a year is allowed as deduction. This benefit of deduction up to Rs 50,000 can be availed by not only senior citizens, but also other people who are paying medical insurance premium of their senior citizen parents.
- The medical expenses incurred by senior citizens in a year are also eligible for tax exemption. Under Section 80DDB of the Income Tax Act, a senior citizen can avail deduction on medical expenses up to Rs 1 lakh.
- Senior citizens can claim deduction up to Rs 50,000 on interest earned on savings and fixed deposits with banks or post offices or co-operative banks.
- Senior citizens can also file income tax returns offline under the Income Tax Act. This facility is given so that senior citizens who do not feel comfortable in filling ITR online can take advantage of offline mode.
