Senior citizens Income Tax benefits 2024

According to the Income Tax Act of 1961 in India, an individual is considered a senior citizen for income tax purposes if they meet the following age criteria:

1. Senior Citizens: For individuals who are resident in India:
   • Aged 60 years or above but below 80 years.
2. Super Senior Citizens: For individuals who are resident in India and also have Indian citizenship:
   • Aged 80 years or above.

In India, senior citizens are eligible for various income tax benefits to ease their financial burden. Here are some key income tax benefits available to senior citizens (individuals aged 60 years or above) in India:

1. Higher basic exemption limit: Senior citizens enjoy a higher basic exemption limit compared to younger taxpayers. The basic exemption limit for senior citizens is Rs. 3,00,000.
2. Higher basic exemption limit for Super senior citizens: Individuals aged 80 years or above are classified as “Super senior citizens” and enjoy an even higher basic exemption limit. The basic exemption limit for very senior citizens is up to Rs. 5,00,000.
3. Deduction for medical expenses: Senior citizens can claim deductions for medical expenses incurred for themselves .The maximum deduction allowed is up to Rs. 50,000 under Section 80D. But it is important to know that deduction of medical expenses is allowed only if they do not have medical Insurance (Mediclaim)
4. Deduction for health insurance premium: Senior citizens can avail a deduction of up to Rs. 50,000 under Section 80D for the premium paid towards health insurance policies for themselves and their family members.
5. Exemption on interest income: Senior citizens can avail an exemption on interest income earned from specified sources, such as fixed deposits, savings accounts, and post office schemes, up to Rs. 50,000 per year under Section 80TTB.
6. Tax benefits on pension income: Pension income received by senior citizens is eligible for standard deductions up to Rs. 50,000 under Section 16.
7. No advance tax payment: Senior citizens who do not have any business income are exempt from paying advance tax. They can pay the entire tax liability at the time of filing the income tax return.
8. No need to file Income Tax Return: As per section 194P a senior citizen (Age 75 years of above) who have income from pension + interest from a bank do not require to file income tax return, bank will have to file ITR on their behalf, a declaration to be submit with bank in Form 12BBA

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