Special tax benefits for senior citizen under Income Tax Act 1961
1. For FY 2019-20, income tax exemption limit for resident senior citizen (i.e => 60 years , < 80 years) is Rs 3,00,000, whereas the same for normal individual is Rs 2,50,000. The basic exemption limit for resident super senior citizen (i.e => 80 years) is Rs 5,00,000.
2. Exemption from payment of Advance Tax
Resident Senior citizens who don’t have business Income are exempted from payment of Advance tax.
3. Higher deduction on interest income u/s 80TTB– w.e.f FY 2018-19, in case of Resident senior citizen deduction of Rs 50,000 is allowed on account of interest Income (i.e interest on saving bank, bank deposits, post office deposit and co-operative society deposit).
4. No Tax Deduction at Source (TDS) by filing form 15H.
5. Additional Deduction u/s 80D (Medical benefits)
Considering the higher medical cost at old age, higher exemption u/s 80D has been provided for senior citizens and super senior citizens.
From Financial year 2018-19 the deduction u/s 80D depends upon whether mediclaim policy is taken or not. If Medical insurance is taken for Family members or for Parents the deduction allowed is Rs.50,000
If Medical Insurance is not taken, the medical expenditure incurred for Family members or for Parents the deduction allowed is Rs.50,000.
6. Additional Deduction u/s 80DDB for specified diseases:
U/s 80DDB deduction is allowed to Resident individual and HUF for medical treatment of specified diseases (like Cancer, AIDS etc) of self and dependent family members.
For resident senior citizen (either the assesse or his family member is senior citizen)= Rs. 1,00,000 or actual expenditure incurred whichever is lower.
Relief from Scrutiny of IT-Returns-
As per press release of Central Board of Direct Taxes(CBDT) No.402/92/2006-MC (07 of 2011) , One more very important benefit available for senior citizens is that there is no regular scrutiny for them, except for exceptional cases.
7. Offline ITR Filing
E-filings of ITR forms are not mandatory for Super Senior Citizens (i.e age 80 years or above) and they can file paper returns provided they do not have regular business or profession income. more