The last date for filing income tax returns is now just one day away. So far, 5 crore taxpayers have filed their returns. The Income Tax Department is constantly sending reminders for return filing to those taxpayers who have not filed their returns yet.
The Income Tax Department has exempted super senior citizens, i.e. people whose age is more than 80 years, from filing returns. But, it is mandatory for people aged between 60 and 80 years who fall in the category of senior citizens to file returns. But people whose age is 75 years or more and who have income only from pension or interest can file Form 12BBA through the bank (in which the pension money comes). They do not need to file income tax returns.
Higher exemption limit in old regime
The Income Tax Department has also given many additional concessions to senior citizens in terms of tax. In the old regime of income tax, the basic exemption limit for taxpayers above 60 years of age is Rs 3 lakh. For people above 80 years of age, it is Rs 5 lakh. In the new regime of income tax, the basic exemption limit is Rs 3 lakh for all types of taxpayers. Taxpayers whose total income is up to Rs 7 lakh get a rebate of Rs 25,000 under section 87A.
Also Read: Tax professionals appeal to CBDT to extend the last date for filing ITR to August 31
Section 80c
In the old regime of income tax, senior citizens can take advantage of Senior Citizens Saving Scheme (SCSS). This scheme has been started especially for senior citizens. A person of 60 years or more can invest in this scheme. Retired civilian employees of 55 years and defense employees of 50 years can invest in this scheme. An investment of up to Rs 30 lakh in this scheme gets a deduction of up to Rs 1.5 lakh under section 80C. If the interest from all SCSS accounts exceeds Rs 50,000 in a financial year, then it is taxed. Currently, the interest rate of this scheme is 8.2 percent, which is paid every quarter.
Section 80D
Under this section, senior citizens get deduction on health policy premium. This deduction is Rs 50,000 in a financial year. If a taxpayer’s parents are 60 years or older, he can buy a health policy for them and claim deduction on the premium. Apart from this, if a senior citizen does not have a health policy, then he or his children can claim deduction on medical expenses up to Rs 50,000 under Section 80D for the treatment of their senior citizen parents.
Section 80TTB
Under this section, senior citizens get tax exemption on interest up to Rs 50,000 earned from savings account or fixed deposit. Interest above this amount is taxable.
