• Apr
  • 30
  • 2015

Tax Benefits Available to Senior Citizens

Posted In Income Tax | , | 55 Comments » Print Friendly and PDF

CA Sandeep Kanoi

CA Sandeep KanoiA person becomes senior citizen under Income Tax Act in any year after attaining the age of 60 even for one day. Once he attains 60 years, his status as senior citizen in that financial year, gives him some relief .There are not many income tax exemptions available for senior citizens. These are listed below:

1. Higher Exemption Limit

From F.Y. 2011-12  Qualifying age for Senior Citizens has been reduced from 65 years to 60 years and from A.Y. 2015-16 exemption limit for Senior Citizens has been enhanced from Rs. 2,50,000 to Rs. 3,00,000.  A new category of Very Senior Citizens, 80 years and above, has been created who will be eligible for a higher exemption limit of Rs. 5,00,000. Senior citizen above the age of 80 years are entitled to higher exemption Limit of Rs. 5,00,000 from A.Y. 2012-13.

2. Reverse mortgage for senior citizens

Reverse mortgage’ – a concept introduced by Finance 2007 -provides that a senior citizen will be able to avail of monthly income streams by mortgaging a house owned by him.  For more details read the following article :- Reverse mortgage created under a scheme made and notified by the Central Government shall not be regarded as a transfer U/s. 2(47)

3. Tax benefits on medical insurance hiked

A senior citizen can avail of higher of higher deduction of Rs 20,000 u/s Section 80D and the same limit is been further increased to Rs. 30,000/- from A.Y. 2016-17.

4.  Tax benefit in respect of Expense on medical expenditure in respect of a very senior citizen

With effect from A.Y. 2016-17 Any payment made on account of medical expenditure in respect of a very senior citizen, if no payment has been made to keep in force an insurance on the health of such person, as does not exceed thirty thousand rupees shall be allowed as deduction under section 80D. Section 80D- Hike in Deduction Limit for Mediclaim
5. Higher Deduction u/s 80DDB for Senior Citizens and Super Senior Citizens

Section 80DDB provides deduction to an assessee in case of expense on medical treatment of specified ailments. Generally this deduction is available upto Rs 40,000 . However , if the patient is a senior citizen, then deduction of Rs 60,000 is allowable.

From A.Y. 2016-17 higher limit of deduction of upto eighty thousand rupees is allowable, for the expenditure incurred in respect of the medical treatment of a “very senior citizen”. A “very senior citizen” is proposed to be defined as an individual resident in India who is of the age of eighty years or more at any time during the relevant previous year.   Section 80DDB– Limit raised & waived condition of certificate

6. No Routine Income Tax Scrutiny of Senior Citizens  -Appreciating the concern of these taxpayers and with a view to mitigate their hardships, Central Board of Direct Taxes has reviewed its scrutiny selection procedure. In order to redress the grievance, it has been decided that during the financial year 2011-12, cases of senior citizens and small taxpayers, filing income-tax returns in ITR-1 and ITR-2 will be subjected to scrutiny only where the Income Tax department is in possession of credible information. Senior citizens for this purpose would be individual taxpayers who are 60 years of age or more.

7. Senior Citizens not having Business Income Exempt From Advance tax payment :-  From Financial year 2012-13  resident senior citizen, not having any income chargeable under the head “Profits and gains of business or profession”, shall not be liable to pay advance tax and such senior citizen shall be allowed to discharge his tax liability (other than TDS) by payment of self assessment tax.

8.  Senior citizens receive a higher interest (up to 50 bps) on a 5-year fixed deposit, which is eligible for deduction from the total income under Section 80C.

9.  Senior citizens can claim exemption on the tax deducted at source (TDS) on interest income earned on deposits. It can be done by submitting Form 15H under Section 197 of the IT Act.

Republished with amendments


55 responses to “Tax Benefits Available to Senior Citizens”

  1. Dwarka Prasad says:

    One employee’s DOB is 01/04/1956 and retiring on 31.03.2016 on sixty years retirement age in Govt organisation. Please confirm as per Income Tax Rule whether the employee is entitle for the benefit of Sr.Citizen of 60 years or not as on 31.3.2016 for taxable income after 3.00 lakh or 2.50 lakh.
    Dwarka Prasad

  2. A Kumar says:

    Dear Sir,
    I’m a Sr.Citizen retired CPSU employee. I spent 45000/- on medical treatment of my wife & self in OPD and the entire amount has been reimbursed by my department. I have added this amount in my income. Plz. intimate How much deduction is allowed as exempt.
    Thanks
    A Kumar

  3. AKHIL GUPTA says:

    WHERE DOES FIND REPLIES TO THE QUERIES WHICH PUBLISHED BY YOU.
    DOES AN ASSESSEE OVER 80 YEARS OF AGE LIABLE FOR PAYMENT OF ADVANCE TAX

    AKHIL GUPTA
    9810844828

  4. Nisha says:

    Dear Sir,
    My parents (age 70), both are doctors an owning a small nursing home. so what are the possible investment options which can give them tax benefits. Are PPF one of the good options.

  5. R.C. Godhwani says:

    The due date for filing IT Return for Asstt.Year 2015-16 is 31.08.2015. The tax works out to Rs.1,65,000/-. The TDS is Rs.1,10,000/-. I am a senior citizen. Please let me know whether interest u/s 234B will be payable?

  6. S.K.BOSE. says:

    Sir, Me & my wife both are Sr.Citizen of + 70 yrs. and Diabetics Patients. My wife is more serious patient with post surgical complications, we both have to spend over 10K per month on Medicines & Diagnostic checkup. Both of us have Med.ins with bank and pay 7K premium/ yr in case we are hospitalized. I have retd. long back & don’t have any pension, fully living on financial help from my 2 sons. My only asset is my Flat which I intend to sell & keep the money in FD & be free from my dependency on my children. The Flat will fetch around 1.5 Cr. in the present market value I expect, it is 20 yrs.old was purchased at around 7 lacs. only. Kindly guide me to plan my savings so that maximum monthly return will be available to me to meet our Med. and Food Expenses for a moderate living. The entire FD amount will go to my sons equally as per my Will.

  7. shiva says:

    SIR
    I retired on 31-08-2014.My query is whether
    1.I am construed as senior citizen for FY 2014-2015 Assessment year 2015-2016
    2.Am I eligible for basic exemption limit of Rs.300000-Three lac only
    3.I had spent Rs.22000 for medical health checkup.Can I get exemption of 22000
    4.Can I give form-15h for my fixed deposits to the bank and make payment end of the year basing on interest paid by the Bank.
    5.My mother was a cancer patient who died on 06-04-2015 who was dependent on me,and therefore can I claim exemption of 1.00 lac under section 80dd
    Please reply urgently as I intend to file online return on my own for the first time
    Thanks and regards
    Shiva

  8. amit sharma says:

    Dear Sir,
    my uncle DOB is 4/4/2015 and retired. For FY 2015-16, will we consider as senior citizen or normal employees for tax calculation.

  9. Ram says:

    Sir,

    My date of birth is 31-03-1956 (Thirty First March Nineteen Fifty Six).

    Am I considered a senior citizen for Income Tax purposes for the FY 2015-16 (AY 2016-17)?

  10. Surendra Rathi says:

    Dear Sir,

    One of our employee DOB is 4/4/2015 and retired. For FY 2014-15, will we consider as senior citizen or normal employees for tax calculation.

    Regards,
    Surendra Rathi

  11. anita rai says:

    Sir my d.of birth is 8.8.1954 i retired from central government now when I get a pension pension department is deducting tax every month from April 2015 how can i save the tax i am a senior citizen which plan i should buy for tax relief and can i fixed amount for 5 years that can be relief from tax pl guide me thanks. Anita rai

  12. Devendra kaushik says:

    Please clarify that Income of the spouse who was in service till retirement will be treated separately as an individual.

  13. Venkataraman says:

    Sir
    A senior citizen whose income less than 3 lakhs need to file nil return

  14. Upendra nath Bose says:

    My D.O.B.is 19-09-1935. From which FY I shall be eligible to claim
    Super senior Income tax slab?
    Request an early feedback?
    With kind regards
    unbose

  15. surinder malhotra says:

    I have not received any reply of my mail di 01/05/2015

    surinder malhotra.

  16. surinder malhotra says:

    Sir,
    I am thankful to you for your valuable advice Sir,I want to clear some doubts pe

    under:-

    On investment in shape of F D in bank,one have six different accounts in

    different branches with different I D’s with same Pan No Say six accounts

    out of these six accounts in three accounts one have submitted 15H but in

    other three accounts bank have deducted tax at source say 10000/- Now one

    have to deposit total tax on his total income say 30000/-Please clear that

    he will have to deposit 20000/-or 30000/-
    With regards.

    Surinder Malhotra

  17. PRAKASH says:

    It is informed by my friends that from last year on wards, preventive medical check up without hospitalization is eligible for exemption up to certain limit. Can you confirm this please?

  18. CA Sunil Chandratre says:

    As Per amended provisions of advance tax payment by finance act 2012 the senior citizens are not required to make any payment of advance tax they can make payment of self assessment tax with out interest under section 234B and 234C and by same finance bill the senior citizen can give declaration u/s.197 in prescribed format though their income from interest is exceeding the basic exemption limit but his total income is below taxable limit or his tax liability is NIL

  19. Navin Talati says:

    Sir,
    Is there any provision for a Sr.Citizen that to make a regular TDS is not compulsory? – I mean, a Sr. Citizen can pay his total Tax after the end of the financial year – Is this true?
    If so, under which rule this benefit is given to Sr.Citizen and from when?
    Navin Talati / 30-04-2015

  20. CA. Subhash Chandra Podder says:

    Dear Mr. Suridra Malhotra,
    Read Carefully the Form no: 15 H , where you have to state that ” my income will be below the taxable limit ” for the financial year 2014-2015, 2015-2016.
    If you submit 15 H , though you can get Tax waiver , Bank will not deduct tax from your Investment ( as fixed deposit ) , when you file tax return you have to claim as refund of Tax deducted form FDs, but Income Tax department will not give credit for TDS deducted by banks , besides you have violate the Income tax Rules and Act. Hench , beware of that.

  21. surinder malhotra says:

    I am sr citizen my d o b is 31/03/48 from my pension total income is 360000/=

    and from my interest income total income is approx 300000/=

    I am paying total tax after downloading 26 a s register at the time of filing

    return,and receiving refunds from I T deptt I am submitting 15 H to bank for not

    deducting tax at source Pl advice can I submit 15H to bank even if my total income

    is taxable.With regards, Surinder Malhotra.

  22. k k Sarawagi says:

    Dear Mr. Kanoi,

    Can sr. citizen furnish Form 15H to Bank to avoid TDS even if he is in the income group of Rs. 5 Lacs to Rs.10 Lacs.

  23. TEJASH says:

    Dear sir,

    i have constructed new warehouse and i have warehouse rental income of 5 lac/annum after TDS, i am pensioner getting pension of 240000/year. the warehouse occupier is depositing the rent after deduction of 10% tds, what should do to save the income tax?

    to make a firm and cover some expenses like travel, telephone, security, repair etc.

    or receive rent as individual?

    thanks

    tejash

  24. Amar Dureja says:

    Dear Sir
    My date of birth is 24/12/1955, Can i request to my bank not to deduct TDS on interest earned from FDs For Financial year 2015-16.My income is from business.
    Warmth Regards AMAR

  25. H H Mohapatra says:

    I am 62 years of age and a Central govt pensioner. I am residing in a rented house as I have no house of my own. Please clarify as to 1. whether I can get rebate on rent paid? 2. How much interest is exempted from (a) saving bank A/c & (b) fixed deposit. Thanking you.

  26. KAMAL KLAPOOR says:

    Dear sir,

    What is exemption under 80-c for senior citizen ( male) under asstt.year 2015-16

    kamal chandra kapoor

    9719339576

  27. Ashok B Jadhav says:

    I AM ATTENDING AGE OF 60 ON 054\2015 AND THE RETURN OF I.T. TO BE FILED IN THE MONTH OF APRIL-MAY OR JUNE,2015. MY QUESTION IS THIS CAN I WILL GET THE BENEFIT OF SENIOR CITIZEN ON ACCOUNT OF FILE RETURN ON BASIS LIMIT OF RS.2.50 THOUSAND OR RS.3.00. PLEASE CLARIFY.

  28. B.S.Negi says:

    Sir, My DOB is 27-2-1955.I will be 60 years old on 27-2-2015.Will I get tax benefit as senior Citizen in FY 2014-15.With regards,B.S.Negi

  29. deshmukh kishor damodar says:

    i am senior citizen [07-11-1954] and retired from govt service.after retirement i am working with one private firm as salaried person . now i am tax payer . pl let me know whether i am exempted from advance tax payment or otherwise ?

  30. Titan Sheikh says:

    Sir,
    I want to know a female senior citizen who pension holder with engage a business as a partner of Partnership firm & she has earned profit from firm,
    Should she be mandate or liable to pay Advance Income Tax ?
    Please suggest me…

    Thanks in Advance
    Titan Sheilkh

  31. Sanjay Shah says:

    Dear Sir,
    My DOB is 22/03/1955 and completing 60 years in coming March only (In current financial year) Will I be eligible for claiming benefit as senior citizen?? Please reply as early as possible so that I can calculate my tax liability accordingly

    Thanks

  32. upendra nath Bose says:

    my DOB 19-09-1935. From which AY I will be eligible to claim benefit For Sr. citizen 80 yeas or more
    upendra nath Bose

  33. Samir Kumar Das says:

    I was a Central Govt. employee and retired on 31/03/2014. My date of birth is 16/03/1954. Will I be considered as “Senior Citizen” for the AY 14-15 and eligible for tax rebate for 2,50,000.

  34. Jit says:

    After filing 15H for FD in Bank is it necessary to file IT return in ITR 1 , am a senior citizen with pension benefit

  35. FARAH KHAN says:

    My father is a senior citizen and receives pension for which due tax is paid. He has availed the benefit under 80C from STDR in a bank. After 6 years he will receive a Rs. 20000 as interest. Is the interest taxable and if yes. is there any method to split the interest on yearly basis for income tax payment.

  36. S.Venkateshwarulu says:

    Dear Sir / Madam,

    If a Central Government official was given a service extension of 2 years that is from the age of 60 to 62 years, will he be treated as regular salaried person for income tax purpose or will he be treated as a senior citizen for the income tax calculations?

    Please clarify

    S.Venkateshwarulu

  37. SampathKumar says:

    Iam 79 years old ,retired My individual annual income excluding gifts from son/daughter is less than Rs 2,50,000/ If such gifts are included the total may exceed the limit.Am I required to file IT Return
    .

  38. venkat says:

    QUOTE
    can claim exemption on the tax deducted at source (TDS)
    UNQUOTE
    Is it not necessary for this concession to have NO taxable income. please clarify.
    even if you have taxable income can sc give 15 H form.

    It would be better if TDS is not deducted on income from deposits for senior citizens.

  39. venkat says:

    QUOTE
    can claim exemption on the tax deducted at source (TDS)
    UNQUOTE
    I

  40. kanaiyalal sohagia says:

    Dear Sir,

    I have sinor citizen and i have done medical treatment for brain during last year so in which coloum i examption for this medical treatment.

    Thanking you
    kanaiyalal sohagia

  41. lalitha hariharan says:

    VERY SENIOR CITIZEN CLARIFICATION SOUGHT. A PERSON BORN IN JUNE 1933 – iS SHE/HE A VERY SENIOR CITIZEN OR NOT SINCE 79 YEARS COMPLETED AS OF jUNE 2012 ITSELF. pLEASE ADVISE

  42. J. Singh says:

    I am a salary paid sr citizen (13.6.1952) with no income from business or profession. I retired on 30.6.12. I received 4 month salary and 8 month pension during 2012-13 F.R.
    My employer deducted tax at source and deposited the same in time.
    I have a fixed deposit and the bank deducted tax at source @10% and deposited the same in time.
    I am to pay 9200/- as additional tax (self assessed tax) on account of the fixed deposit.
    I have not paid any advance tax on 15th Sept 12, 15th Dec 12
    and 15th March 2013.
    Pl let as how much interest I am required to pay on myself assesses tax amount of 9200/- if
    1. I deposit it by 31 May 2013
    2. I deposit it by 30 June 2013

  43. DEBABRATA DEY says:

    I am a retired senior citizen (DOB – 05.01.1951). I have retired from WBPDCL on 31.01.2011. I have no income chargeable under the head “Profits and gains of business or profession”. However, in the FY 2012-13, I have income (interest/pension etc.) from other sources like, FD investments in bank (40 Lacs), MIS in Post Office (9 Lacs), one time investment in LICI (10 Lacs). I am also getting EPF/LICI Pensions. My income from other sources (bank/post office interest, LICI/EPS Pension) is Rs. 6, 49,090.00 in the FY 2012-13. I have paid yearly Mediclaim Premium Rs. 6,722.00 & yearly LICI Premiums Rs. 3, 637.00. What amount of Self Assessment Tax I have to pay to the IT Department (on line) prior to filing IT Return in July, 2013?

    The IT Expert may kindly calculate and mail me the details of calculation in this regard to my e-mail Id .

  44. DEBABRATA DEY says:

    I am a retired senior citizen (DOB – 05.01.1951). I have retired from WBPDCL on 31.01.2011. I have income (interest/pension) from other sources like FD investment in bank (40 lacs), MIS in Post Office (9 lacs), one time investment in LICI (1o lacs). I am also getting monthly EPF Pension. I have no income chargeable under the head “Profits and gains of business or profession”. My yearly income from other sources(bank/post office interest, LICI/EPS Pension) is Rs. 6, 49,090.00. I have paid mediclaim premium Rs. 6,722.00 & LICI premiums Rs. 3, 637.00. What amount of self assessment tax I have to pay prior to filing IT Return in July, 2013? Please mail me the details of calculation in this regard.

  45. Ramprasad says:

    i am a senior citizen and pl. let me know whether i am eligible for standard deduction. if so, what is the amount for the financial year 2012-2013.

  46. A Subramanyam says:

    I am attaining the status of senior citizen during the middle of this financial year ie 2013-14. Kindly let me know whether I can derive the benefit for the full year.

  47. GURDEV SINGH says:

    Dear Sir,

    Amount of Rs.1350/- TDS Payment of interest on Senior Citizen Saving Scheme was deducted by the Post Master Sector-20, Chandigarh Book adjustment through audit office Kapurthala for the year 2010-2011 vide their certifi9cate of DTS issued on 25 Aug 2011.The request of refund for Rs. 1350/- submitted to ITO Ward-5(3) Chandigarh on 30 Aug 2011/2011-12. The particular are as given ASK No: 702300811049740 ,Gurdev Singh, ,# 2145/3, Sector-45 C,Chandigarh PAN No : ACXPS2034D/ITR-I RRR/BIN : W)450311496/R00048,ITO WARD-5,(3) Chandigarh, My SBI Sector-30, Chandigarh Saving A/C No;10304711370. The refunmd of Rs. 1350- has not been refunded so far. Please look into the matter and reply as early as possible on my email ID: [email protected] Thanks.

  48. S. SIVARAMAKRISHNAN says:

    The honourable Finance Minister, Shri P. Chidambaram, does good to employees in service and to those retired from service whenever he plays the role of finance portfolio. Now he has done away the system of payment of advance tax for senior citizens from financial year 2012-2013, thereby avoiding the levy of penal interest. Now the senior citizens have to pay only self assessment tax. This is a great help the F.M. has done to the senior citizens. Shall I request the F.M. to consider another amendment to the payment of gratuity act 2010 making it applicable to all those retirees with effect from 1st January 2006, as the amendment was made applicable from May 2010 only for those retired from other than government service. If he does this help, a number of non-government pensioners retired from 1st January 2006 to 30th April 2010 will be greatly benefited.

  49. Lalit Bhatnagar says:

    My understanding is that exemption limit of Rs. 240,000, now increased to Rs. 250,000, is not available to NRIs, specially those having acquired citizenship of another country. They can claim only Rs. 160,000, the lowest for a male income tax payer. Would be higher for women.

    Please clarify.

  50. U R K Rao says:

    I am a US citizen living in US with pension income of about 5 lacs a year in India. I do not have any other income in India. I am 77 years old. What is my deduction as a senior citizen during FYI 2013-14.
    Thanks for your kind help.

    U R K RAO
    Louisville,CO 80027
    USA
    FEB2,2013

  51. n.krishnamoorthy says:

    From FY 2012-13 onwards senior citizens are not required to pay advance tax. This is a significant facility because the Deptt cannot levy interest u/s.234B & 234C for failure to pay advance tax.

  52. K.P.SAGAR says:

    sir
    may i request you to kindly summarisethe benefits which can be availed by the senior citizen in a shape of synopsis, so that it can be published and give a wide publicity and the needy can use the same. pl. oblige me by doing so. thanks

  53. J.S.Sud says:

    One less headache for senior citizens is that they do not have to pay advance tax.They can pay it by self assessment prior to filing their return.

  54. LR Gupta says:

    No you can not as the limit reduced from F.Y. 11-12

  55. [P.D.SHARMA.LL.B. says:

    DEAR SIR
    WE CAN TAKE BENIFIT OF INCOME TEX AS 60 YEARS AGE IN THE YEAR 20110-2011 LAST YEAR UR NOT
    THANKING YOU 
    P.D.SHARMA

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