Any individual between the ages group 60 to 80 is termed as a ‘senior citizen.’ An individual over 80 years of age is a very senior citizen. There are several income tax benefits available for senior and very senior citizens of India. It includes higher exemption limits, deductions, and interests earned on deposits, and more (1).
The compiled list of income tax benefits for senior and very senior citizens of India:
Higher Exemption Limit For Senior Citizens
Compared to an average and non-senior citizen taxpayer, senior citizens and very senior citizen gets higher exemption limit. The exemption limit is the level of income you are not liable to pay tax to the government. For the fiscal year 2020-21, the senior citizens get a 3,00,000 INR exemption limit. Whereas, the very senior citizens have 5,00,000 INR exemption limit. A non-senior citizen is liable to pay to the government if his income exceeds 2,50,000 INR.
Paying Advance Tax Exemption
According to the 208 section, people who have an estimated tax liability for the year is 10,000 INR or more, shall pay his tax in advance. Individuals pay it in the Form of ‘advance tax.’ However, a senior citizen with no business or professional income is not liable to pay advance tax as per section 207.
Senior Citizen Paper Filing ITR
A very senior citizen can file his income tax return in paper mode. It is applicable in Form ITR 1 or ITR 4. It means that if a very senior citizen is submitting an income tax return form ITR 1 or 4, e-filling is not mandatory for him. He may also e-file as per his preferences.
Furthermore, an interest up to 50,000 INR earned on saving deposits and fixed deposits in banks, post-office, or co-operative banks by a senior citizen is eligible for deduction. Senior Citizens can avail of this deduction under Section 80TTB. There will be no deduction of tax up to 50,000 INR at the source. The limit has to be calculated individually for every bank.