For the financial year 2022-23, senior citizens (60-79 years) and very senior citizens (80 years and above) benefit from higher tax exemption limits compared to non-senior citizens. Senior citizens have an exemption limit of ₹3,00,000, while very senior citizens have a limit of ₹5,00,000, offering significant tax relief. Senior citizens also benefit from exemptions on advance tax payments if they have no business income and can claim a deduction of up to ₹50,000 on interest income from deposits. Furthermore, there is no tax deduction at source for interest earned up to ₹50,000 from banks for senior citizens. For medical expenses, senior citizens can claim deductions under Sections 80DDB and 80D. Although there is no overall exemption from filing returns, the Finance Act, 2021 introduced Section 194P, allowing those aged 75 and above, with pension and interest income, to have tax deducted by banks without needing to file returns, provided they meet specific conditions.
Q1. What are the benefits available to a senior citizen and very senior citizen in respect of tax rates?
Ans: Senior citizens and a very senior citizen are granted a higher exemption limit as compared to normal tax payers. Exemption limit is the quantum of income up to which a person is not liable to pay tax. The exemption limit granted to senior citizen and very senior citizen for the financial year 2022-23 is as follows :
| Senior citizen | Very senior citizen |
| A senior citizen is granted a higher exemption limit compared to non-senior citizens. The exemption limit for the financial year 2022-23 available to a resident senior citizen is Rs. 3,00,000. The exemption limit for non-senior citizen is Rs. 2,50,000. Thus, it can be observed that an additional benefit of Rs. 50,000 in the form of higher exemption limit is available to a resident senior citizen as compared to normal tax payers. | A very senior citizen is granted a higher exemption limit compared to others. The exemption limit for the financial year 2022-23 available to a resident very senior citizen is Rs. 5,00,000. The exemption limit for non-senior citizen is Rs. 2,50,000. Thus, it can be observed that an additional benefit of Rs. 2,50,000 in the form of higher exemption limit is available to a resident very senior citizen as compared to normal tax payers. |
Q2. At what age a person will qualify as a senior citizen and very senior citizen under the Income-tax Law?
Ans: Before understanding the age criteria, it is very important to know that the tax benefits offered under the Income-tax Law to a senior citizen/very senior citizen are available only to resident senior citizen and resident very senior citizens. In other words, these benefits are not available to a non-resident even though he may be of higher age. The age and other criteria to qualify as a senior citizen and very senior citizen under the Income-tax Law are as follows :
| Criteria for senior citizen | Criteria for very senior citizen |
| Must be of the age of 60 years or above but less than 80 year at any time during the respective year. | Must be of the age of 80 years or above at any time during the respective year. |
| Must be resident | Must be resident |
Q3. Is there any special benefit available under the Income-tax law to senior citizens?
Ans: Yes, the Income-tax Law very well takes care of the senior citizens of the nation by offering them several tax benefits. In this part you can gain knowledge of various benefits offered by the Income-tax Law to senior citizens.
Q4. Is a very senior citizen granted exemption from e-filing of income tax return?
Ans: A very senior citizen filing his return of income in Form ITR 1/4 can file his return of income in paper mode, i.e., for him e filing of ITR 1/4 (as the case may be) is not mandatory. However, he may go for e-filing if he wishes.
Q5. Is a Resident senior citizen granted exemption from payment of advance tax?
Ans: As per section 208, every person whose estimated tax liability for the year is Rs. 10,000 or more, shall pay his tax in advance, in the form of “advance tax”. However, section 207 gives relief from payment of advance tax to a resident senior citizen. As per section 207 a resident senior citizen (i.e., an individual of the age of 60 years or above during the relevant financial year) not having any income from business or profession, is not liable to pay advance tax.
Q6. What are the benefits available in respect of interest on deposits in case of senior citizens?
Ans: Section 80TTB of the Income Tax law gives provisions relating to tax benefits available on account of interest income from deposits with banks or post office or co-operative banks of an amount upto Rs. 50,000 earned by the senior citizen (i.e., an individual of the age of 60 years or above). Interest earned on saving deposits and fixed deposit, both shall be eligible for deduction under this provision.
Section 194A of the Income Tax law gives corresponding provisions that no tax shall be deducted at source from payment of interest by bank or post-office or co-operative bank to a senior citizen up to Rs. 50,000. Therefor limit is to be computed for every bank individually.
Q7. What are the benefits available in respect of expenditure incurred on account of medical treatment of specified diseases on treatment of a senior citizen?
Ans: section 80DDB of the Income-tax Law gives various provisions relating to tax benefits available on account of expenditure on medical treatment of specified diseases. Click the following link to know about details of section 80DDB which covers the details of special benefits under section 80DDB available to a senior citizen. Check page 8 topic “Deduction in respect of expenditure on medical treatment of specified diseases [ section 80DDB]”
Q8. What are the benefits available in respect of expenditure incurred on account of medical insurance premium/ medical expenditure to a senior citizen and on account of?
Ans: Section 80D of the Income-tax Law gives various provisions relating to tax benefits available on account of payment of medical insurance premium and other related items. Click the following link to know about details of section 80D which covers the details of special benefits under section 80D available to a senior citizen. Check page 5 topic “Deduction in respect of medical insurance premium [ Section 80D]”
Q9. Is a senior citizen exempts from filing Income-tax return (ITR)?
Ans: Income-tax Act, 1961 provides no exemption to senior citizen or very senior citizen from filing of return of income. However, to provide relief to the senior citizens (whose age is 75 years or more) and to reduce the compliance burden on them, the Finance Act, 2021, has inserted a new section 194P.
This provision requires a banking company to deduct tax under this provision if deductee is maintaining an account with it in which he is receiving his pension income. The tax is required to be deducted under this new provision if the recipient is a resident individual whose age is 75 years or more at any time during the year and the following conditions are fulfilled:
a) Total Income of the deductee consists only income in the nature of pension and interest received or receivable from any account maintained with deductor (such bank); and
b) Deductee has furnished a declaration to deductor containing prescribed particulars.
If the above conditions are satisfied, the deductor shall compute the income of deductee after giving effect to the deduction allowable under Chapter VI-A and rebate under section 87A. Tax on such income is required to be deducted on the basis of rates in force.
If tax is deducted from the income of such senior-citizen, he shall not be liable to furnish the return of income for the previous year in which tax has been deducted.
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.
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
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.
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)?
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
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
Please clarify that Income of the spouse who was in service till retirement will be treated separately as an individual.
Sir
A senior citizen whose income less than 3 lakhs need to file nil return
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
I have not received any reply of my mail di 01/05/2015
surinder malhotra.
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
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?
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
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
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.
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.
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.
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
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
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.
good
Dear sir,
What is exemption under 80-c for senior citizen ( male) under asstt.year 2015-16
kamal chandra kapoor
9719339576
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.
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
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 ?
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
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
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
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.
After filing 15H for FD in Bank is it necessary to file IT return in ITR 1 , am a senior citizen with pension benefit
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.
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
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
.
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.
QUOTE
can claim exemption on the tax deducted at source (TDS)
UNQUOTE
I
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
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
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
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 .
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.
good
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.
I HAVE SOLD MY PLOT AS SENIOR CITIZENS AND HAVE NO INCOME FOR RS 35 LACS PL ADVISE HOW MUCH TOPAY
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.
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: pbgurdevsingh2145@gmail.com Thanks.
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.
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.
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
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.
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
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.
No you can not as the limit reduced from F.Y. 11-12
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