As per Income Tax Act one who has Completed the Age of 60 years during the previous year or in a year Prior to that is a senior Citizen and one who has Completed the Age of 80 years during the previous year or in a year Prior to that is a super Senior Citizen.

1) The Income Tax Act identifies a senior citizen as a person who is 60 years of age or more at any time during the previous year. It provides for special benefits for such persons.

2) As per the IT Act, senior citizens who have an income up to Rs 3 lakh per annum are eligible for tax exemption.

3) 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.

4) 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. Moreover wef 01.04.2018 the limit for TDS on interest on deposits u/s 194A has been increased to Rs 50,000 for senior citizen. Which means if the aount of interest does not exceeds Rs 50,000 no TDS shall be deducted.

5) Under Section 80D: Deduction For Medical Insurance Premium.

  • In case the persons  is a senior citizen (i.e. 60 years or more) and Mediclaim Insurance premium is paid for such senior citizen, deduction amount is  Rs. 30,000 (this amount has been increased to Rs 50000/- from A.Y 2019-20)
  • For uninsured super senior citizens (more than 80 years old) & senior citizen( i.e. 60 years or more) medical expenditure incurred up to Rs 30,000 shall be allowed as a deduction under section 80D (This amount has been increased to Rs 50000 from A.Y 2019-20)

6) Senior Citizens not having Business Income Exempt From Advance tax payment

As per section 208 every person whose estimated tax liability for the year exceeds Rs. 10,000, shall pay his tax in advance in the form of “advance tax”. Thus, any taxpayer whose estimated tax liability for the year exceeds Rs. 10,000 has to pay his tax in advance by the due dates prescribed in this regard. However, as per section 207, a resident senior citizen (i.e., an individual of the age of 60 years or above) not having any income from business or profession is not liable to pay advance tax.

7) Senior citizen above the age of 80 years are entitled to higher exemption Limit of Rs. 5,00,000 from A.Y. 2012-13.

8) Higher Deduction u/s 80DDB

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 and Rs 80,000 for super senior citizen. Wef A.y 2019-20 the amount of deduction shall be Rs 1,00,000 for both senior and super senior citizen

9)  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)

0. Higher Deduction in respect of interest income to senior citizen under section 80TTB

A deduction upto Rs 10,000/- is allowed under section 80TTA to an assessee in respect of interest income from savings account wef A.y 2019-20.  section 80TTB  allows  a deduction upto Rs 50,000/- in respect of interest income from deposits held by senior citizens. Deduction shall be allowed  upto Rs.50,000/- for FDR and Saving Interest u/s 80TTB .However, no deduction under section 80TTA shall be allowed in these cases .

(Republished with amendments)

More Under Income Tax

29 Comments

  1. K BHAGWAN DAS says:

    I am aged 84 years No taxable income for the past
    6 years filing nil returns I the year 17/18 I received
    Rs 5.6 lacks by sale of shares purchased on 03/08/90 jointly with my wife I have on any
    other income during the year I make my living by gifts from my brothers and relatives
    what is my tax liability for the year

  2. VIJAY KUMAR SETH says:

    Sir . i was admitted in Max hospital on 15 Sept 2018 for treatment of dehydration for 3 days. I am 67 years old. I am not covered under any medicllaim.I paid a bill of Rs 38200/. Please advise me wheather I shall get rebate under sec 80D and if yes, how much amt. Thanks

  3. Anil Parsharam Navare says:

    Sir ,You have mentioned uninsured sr.citizens can claim 30000/-under 80D
    Does it need to be supported by hospital/doctor bill etc. How to claim it?

  4. Rajni says:

    hlo sir actually my father is an ex service man .Tell me he is liable to pay tax is or not.These day my ration dealer has gives more to my father and my father is 76.Plzzz sir reply me on my email id and futher tell me can we complan again for that dealer.My father retired from 1980 .

  5. Devendra kaushik says:

    There is no mention about income of a spouse in senior citizen’s category. I believe that the income of spouse also is treated like any other senior citizen.
    Please clarify.
    Thanks

  6. S.Ramamoorthy says:

    I am going to cross 80 years during this year.As per latest I.tax rule total income up to 5 lakhs are exempt from income tax.The above exemption is for total gross income or taxable income after deducting Rs 3 lakhs and 80 c ,etc.

  7. mohan ketkar says:

    Dear Tax Guru,

    Please clarify EXACT AGE of senior citizen?(Sl.No:1) whether 59 years completed and 60 years running during the previous year (or) (Sl.No:2) 60 years completed and 61 years running during the previous year is eligible as Senior citizen? As per your First Line of this article, you have mentioned “completed the age of 60 years” stands for Sl.No:2 above. If Sl.No:1 is correct, then i request you to change and START the First line of this article as “As per Income Tax Act one who has ATTAINED the Age of 60 years OR MORE DURING PREVIOUS YEARS” Thank you sir. – See more at: https://taxguru.in/income-tax/tax-benefits-for-senior-citizens.html#sthash.oWfYgbDQ.dpuf

  8. dipak says:

    My mother , 83 years old has recently sold her house. The property was acquired through a gift deed roughly a year back. How much tax ( capital gains she is likely to pay. She has no yearly income as such.

    1. K BHAGWAN DAS says:

      I am super senior citizen age 84 years as on 15/5/2018 I received a payment of Rs 5 lacks 65000/
      as sale value as sale value against the shares I
      purchased during the year 1990 jointly with my wife aged 76 years who was sick and bed ridden for more than a year and expired three months ago
      I do not have any income since year 2012

  9. GVA Srinivas says:

    One of our customer, a senior citizen, has submitted Form 15 H and demanding us not to make any TDS on his deposits. The interest income per annum is exceeding Rs.3.00 lacs and as per the extant instructions in our Bank, we have to make TDS whenever the interest income of a senior citizen exceeds Rs.2.50 lacs. Please clarify/guide us in this regard. Please provide the circular / notification on this issue, if the customer is right.

  10. K. Dorai says:

    Please clarify me on the following :

    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.:

    Does it mean that 0.50% interest on investments in term deposits with banks is exempt from income-tax. If so, from which year.

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

    What is the ceiling on interest income on term deposits to file Form 15H

  11. RAJ KUMAR JAIN says:

    THERE IS NO TAX SAVING DEPOSITS WHERE THE INTEREST EARNED IS EXEMP[T FROM INCOME TAX. IT SHOULD BE.
    IF THERE IS ANY, PLEASE ENLIGHTEN ME.

  12. M L Jha says:

    Sir ji,
    Almost only subordinate services uptograde II Sr Citizens comes in the exemption upto the limit of 2.5 lac.I think these after III ACP cross the limit 2.5 lac.In addition to No.of Sr Citizen comes/include in the line of 60 to 80 years. A few Sr Citizens above 80 years might be got benefited of limit 5 to 10 lac. Its simply a fun with the name of exemption to Sr.Cicizens. Why it should not to have been exempted reversed as 5 to 10 lacs for sr citizens agegroup of 60 to 80 year and above. Sr Citiazen should attract the attention of Govt. Thanks Jha M L

    1. RAJ KUMAR JAIN says:

      THE LIMIT FOR TA EXEMPTION SHOULD BE RAISED 2.5 LACS TO ATLEAST 5 LACS AND INTEREST EARNED ON BANK FIXED DEPOSITS MADE OUT OF RETIREMENT BENEFITS BE EXEMPTED FROM INCOME TAX.

  13. ANIL TIWARI says:

    Senior citizens above 60 years and drawing income by way of pension upto Rs.10 lac p.a.should be exempted from filing the Income tax return The deductor is liable for the deduction and deposit of the income tax on the amount of income from Pension. So that Income tax department have less burden to scrutinize and process the returns related to senior citizens. The tax slab for senior citizens should be increased to Rs.5.00 lac from present 2.50 and the rate of taxation for senior should be 10% from 5 – 10 lac and 20% from 10 and above. For entire life they paid Taxes to the Government, now the Government should also think of pensioners, so they can live the life happlily .
    You are requested to submit these suggestions TO THE ministry of finance for the forthcoming Budget of 2014 . Thanking you Sir

  14. R K Jain says:

    The age should be reduced to 70 years from 80 years for Super Senior Citizen so that they can enjoy life at the fag end of their life. The whole life they had been paying tax, now if they save little bit tax and donate or help some body or distribute to their grand childern let them do it and feel some satisfaction.

  15. KR says:

    DEAR TAX GURU, could you please clarify about the EXACT AGE of senior citizen?(Sl.No:1) whether 59 years completed and 60 years running during the previous year (or) (Sl.No:2) 60 years completed and 61 years running during the previous year is eligible as Senior citizen? As per your First Line of this article, you have mentioned “completed the age of 60 years” stands for Sl.No:2 above. If Sl.No:1 is correct, then i request you to change and START the First line of this article as “As per Income Tax Act one who has ATTAINED the Age of 60 years OR MORE DURING PREVIOUS YEARS” Thank you sir.

Leave a Comment

Your email address will not be published. Required fields are marked *

Search Posts by Date

December 2020
M T W T F S S
 123456
78910111213
14151617181920
21222324252627
28293031