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WHAT ARE THE CONCESSIONS SENIOR CITIZEN GET UNDER INCOME TAX

The government declared in Budget 2021 that senior citizens aged 75 and up will be excluded from filing income tax returns (ITR).<br>It should be noted, however, that this relaxation will only apply from FY 2021-22, i.e., for ITRs filed the following year.<br>This indicates that senior individuals above the age of 75 are not excluded from reporting ITRs for the fiscal year 2020-21, i.e. for ITRs due this year.<br>The deadline for filing ITRs for FY 2020-21 is currently December 31, 2021. (extended from the previous deadline of September 30, 2021).

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WHAT ARE THE CONCESSIONS SENIOR CITIZEN GET UNDER INCOME TAX

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  1. Senior citizens get many special concessions in income tax, know what are the rules related to it VINOD K AGRAWAL & ASSOCIATES, CA

  2. Senior citizens over the age of 60 are not only excused from paying taxes, but they are also exempt from paying income tax on their assets and profits. • On income up to Rs 3 lakh, senior citizens are exempt from paying any tax.

  3. exemption in tax limit • Senior citizens have a Tax exemption limit of Rs 3 lakh every financial year, whereas the average person has a tax exemption maximum of Rs 2.5 lakh. • It is Rs 5 lakh for very senior citizens (above 80 years of age). • That is, if a senior citizen's annual income is less than Rs 3 lakh and no TDS has been deducted, he does not need to file an income tax return. • Similarly, if a very senior citizen's annual income is less than Rs 5 lakh, they do not required to file an income tax return.

  4. If the person is over the age of 75, no return is required. • Tax returns are not required for anyone beyond the age of 75. • Those who rely only on their pension or bank interest income. • Other source

  5. Deduction on payment of insurance premium • Medical insurance premiums paid up to Rs 50,000. • The limitation for other citizens has been fixed at Rs 25,000.

  6. Deduction for medical treatment expenses • Senior citizen taxpayers can claim a deduction of up to Rs 1 lakh for expenses incurred on the treatment of certain conditions under section 80DDB. • A person under the age of 60 can deduct up to Rs 40,000 from their income.

  7. Deduction on interest earned • On interest generated from savings bank accounts and fixed deposits, senior citizens can claim a deduction up to Rs 50,000 (annual). • This limit has been set at Rs 10,000 for ordinary people.

  8. E-filing not mandatory • Very senior citizens filing their returns in ITR 1 or ITR 4 can do so in physical mode. E-filing is not necessary.

  9. Exemption on payment of advance tax • Every person whose tax due is Rs 10,000 or more for a year is required to pay tax in advance under section 208 of the Income Tax Act, however a senior citizen whose business or profession generates no income is exempt under section 207. • He is exempt from paying advance tax.

  10. HOPE IT HELPS VINOD K AGRAWAL & ASSOCIATES, CA

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