Senior citizens, aged 60 and above, and super senior citizens, aged 80 and above, are eligible for several tax benefits under the Income Tax Act. Section 80D allows deductions of up to Rs. 50,000 on health insurance premiums and medical expenses for senior citizens and an additional Rs. 50,000 for their parents. Section 80DDB offers a deduction of up to Rs. 1,00,000 for medical treatment of specified diseases. Under Section 80TTB, senior citizens can claim a deduction of up to Rs. 50,000 on interest earned from bank deposits. Super senior citizens are also permitted to file income tax returns in paper form under certain conditions. Additionally, no TDS is deducted from interest payments up to Rs. 50,000 for senior citizens under Section 194A. Section 194P exempts senior citizens aged 75 and above from filing tax returns if they only have pension and interest income, with tax deducted at source. Lastly, senior citizens without business income are not required to pay advance tax, offering relief on their tax liabilities.
Senior Citizen/ Super Senior Citizen – Benefits allowable
A Senior Citizen is a resident Indian whose age is 60 years and above and a Super Senior Citizen is a resident Indian who is of the age of 80 years or above at any time during the respective financial year. This documents contain the list of benefits that senior citizens and super senior citizens receive under the Income-tax Act.
Benefits allowed to a Senior Citizen/ Super Senior Citizen
Meaning of Senior Citizen and Super Senior Citizen
‘Senior citizen’ means a resident individual whose age is 60 years or more at any time during the relevant previous year but less than 80 years on the last day of the previous year.
‘Super senior citizen’ means a resident individual whose age is 80 years or more at any time during the relevant previous year.
The Income-tax Act allows the following benefits to them:
| Section | Particular | Provision |
| 80D | Deduction in respect of health insurance premium | In this section, a senior citizen can avail of the following deduction:
Health Insurance Premium Any amount paid for the medical insurance premium through any mode other than cash for the self, spouse, and their dependent children is allowed as a deduction up to Rs. 50,000. Further, a deduction of up to Rs. 50,000 is also allowed if a premium is paid for the insurance premium taken for parents. Preventive Health Check-Up Any amount paid through cash or other than cash for the preventive health check-up for self, spouse, dependent children, or parents is allowed as a deduction up to Rs. 5,000. Medical Expenditure Any amount paid through any mode other than cash for medical expenditure for self, spouse, dependent children, and parents is allowed as a deduction of up to Rs. 50,000 if the following conditions are satisfied: • The person for whom the expenditure is incurred is a senior citizen; and • No medical insurance policy has been taken for such person. Note: Section 80D allows for a maximum deduction of Rs. 1,00,000 for senior citizens. This deduction is split into Rs. 50,000 for the individual and their family members, and another Rs. 50,000 for their parents. |
| 80DDB | Deduction for Medical treatment of specified disease | A senior citizen can claim deduction under this section if he incurred expenditure on the medical treatment of a prescribed disease or ailment (as specified in Rule 11DD) for himself or any dependent being spouse, children, parents, brother and sister of senior citizen or any of them
The maximum amount of deduction is Rs. 1,00,000 or the actual amount incurred, whichever is lower. Note: Where any amount has been received by the assessee under an insurance policy or reimbursed by an employer, deduction under this provision shall be reduced by the amount received from such insurer or employer. |
| 80TTB | Deduction in respect of interest on deposits | A senior citizen can claim a deduction of up to Rs. 50,000 for interest earned from any deposits (including fixed deposits) from a banking company, cooperative society engaged in the banking business, or post office. |
| Section 139 read with Rule 12 | Filing of return of income in paper form | A super senior citizen is allowed to file the return of income in paper form provided he furnishes the return in ITR 1 (Sahaj) and ITR 4 (Sugam). |
| 194A | TDS from Interest – Other than Interest on Securities | No TDS is required from interest (other than on interest on securities) paid by a banking company, post office, or cooperative bank on time deposits if interest paid/payable to a senior citizen doesn’t exceed Rs. 50,000. |
| 194P | TDS from Pension and Interest Income of specified Senior Citizen | A resident individual is not required to file an income tax return where tax has been deducted under section 194P. The tax is required to be deducted under section 194P if the following conditions are satisfied:
• Individual age should be 75 years or more at any time during the previous year; • The individual has only pension and interest income; • Interest should be received and receivable from a specified bank account; • Pension income should be received in the same bank; • Such individual furnishes a declaration in Form No. 12BBA to the bank containing particulars related to pension income; and Such specified bank has to compute total income after giving the effect of the deduction allowed under Chapter VI-A, rebate under Section 87A, and deduct tax therefrom based on slab rates applicable on such person. The rate shall be further increased by Surcharge and Health & Education Cess. |
| 207 | Advance tax | A resident senior citizen who does not have any income from a business or profession is not liable to pay advance tax even if his estimated tax liability for the financial year is Rs. 10,000 or more. |
[As amended by Finance Act, 2024]
