There are some features of the Income Tax System in India . In this, less tax is imposed on people with low income and more tax is imposed on people with high income. Also, an attempt has been made to give relief in the matter of age.
Senior citizens and super senior citizens get many such exemptions, which are not available to common taxpayers. In the Income Tax Act, a senior citizen is considered to be a person whose age is 60 years or more. But, less than 80 years. People of 80 years and above are called super senior citizens. Let us know what kind of benefits senior citizens and super senior citizens get under the Income Tax Act.
Difference in Basic Exemption Limit
The benefits available to senior citizens and super senior citizens for the financial year 2023-24 are mostly the same. There is a slight difference only in the case of basic exemption limit. The basic exemption limit for senior citizens is Rs 3,00,000. This means that if the annual income of a person of 60 years or more (less than 80) is up to Rs 3 lakh, then he does not need to pay any kind of tax.
Attention to medical expenses of older people
The basic exemption limit for super senior citizens is Rs 5,00,000. This means that if a person is 80 years or more, then he will not have to pay any tax on income up to Rs 5 lakh annually. This has been done keeping in mind that the medical expenses of a person increase with age. He also has to use more medicines regularly.
How much tax is levied on whom?
If the annual income of senior citizens is between Rs 3,00,001 to Rs 5,00,000, then it is necessary to pay 5% tax. If the income is Rs 5,00,0001 to Rs 10,00,000, he has to pay 20% tax on income above Rs 10,000 plus Rs 5 lakh. If the annual income is Rs 10,00,000, he has to pay 30% tax on income above Rs 1,10,000 plus Rs 10 lakh.
Super senior citizens do not have to pay tax on income up to Rs 5 lakh annually. The tax rate on income between Rs 5,00,001 to Rs 10,00,000 will be 20 per cent. If you have an annual income of more than Rs 10,00,000, you will have to pay 30% tax on the amount above Rs 1,00,000 plus Rs 10 lakh.
Senior citizens and super senior citizens are allowed a deduction of Rs 50,000 annually on health insurance premium under section 80D of the Income Tax Act. Apart from this, he is allowed a deduction of Rs 50,000 in the case of interest income from savings accounts and deposits under section 80TTB.
