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Senior citizens get various types of tax benefits, know details

Tax Benefits To Senior Citizens: In view of the limited sources of income of senior citizens, many tax related concessions are given in comparison to normal taxpayers. Income Tax Limit for Senior Citizens is available up to a certain limit, as well as many types of deduction benefits (Income Tax Deduction benefits to senior citizens) are also available. They are also given some facility for filing income tax return, let’s know about similar tax benefits which are for senior citizens.

income tax exemption limit

At present, ordinary taxpayers do not have to pay any tax on income up to Rs 2.5 lakh. But for senior citizens, this limit is Rs 3 lakh. If any tax is made on income of Rs 3 to 5 lakh, then tax rebate is available under 87A. On the other hand, senior citizens above 80 years of age get tax exemption on income up to Rs 5 lakh.

Exemption on earning from FD interest

Most senior citizens invest in a place that is safe. Fixed deposit is the best way of investment for them. By investing in it, they get a fixed amount in the form of interest, which increases their income. In such a situation, senior citizens get tax exemption under 80TTB on income up to 50 thousand rupees in a financial year. If more interest is earned than this, then they have to pay tax on the additional interest. For ordinary taxpayers, this limit is 10 thousand rupees per year.

Medical insurance premium deduction

Senior citizens have to spend the most on health. In such a situation, they can be free from the burden through insurance. Therefore, senior citizens can take advantage of deduction on medical insurance premium up to Rs 50,000 in a financial year. Senior citizens get this deduction under section 80D of the Income Tax Act. This benefit of deduction up to Rs 50,000 can be availed by not only senior citizens but also other taxpayers who pay medical insurance premium of their senior citizen parents.

Tax exemption on medical expenses

Expenditure on health increases significantly in old age. The benefit of tax exemption can also be taken on the expenses incurred in the treatment of senior citizens. Under Section 80DDB of the Income Tax Act, senior citizens can avail deduction on medical expenses up to Rs 1 lakh. But for this it is necessary that the payment has not been made in cash but by net banking, debit-credit card or cheque.

offline income tax return filing

It is necessary for all taxpayers to file income tax return online, but senior citizens are also given concession in this. Under the Income Tax Act, senior citizens can file income tax returns offline if they want. Actually, this facility is given so that senior citizens who have difficulty in filing ITR online can file returns offline.

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Shivam Bangwal

Shivam Bangwal is an Indian based entrepreneur who is a tech, travel and coding enthusiast with a post graduation degree on Master's of Computer Applications. He is a founder of Youthistaan, People News Chronicle, Hitchhike TV, Branding Panther and many more.

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