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The Union Budget announced by the Government of India every year includes important information for all Indian citizens including their tax liabilities. It also includes information on income tax slabs for senior citizens to be followed for the year. In this writing, we will shed light on the information that you need to file ITR for senior citizens including tax slabs, tax filings, tax benefits, and tax calculations according to the latest income tax laws. Well, before that we need to first understand who is a senior citizen according to the IT regulations.
A senior citizen is defined in IT regulations as someone who is more than 60 years and less than 80 years of age. Citizens who are more than 80 years of age are defined as super senior citizens. All age calculations happen based on the last date of the previous fiscal year.
Senior citizen tax slab in the age group of 60-80 years are mentioned here in below:
| Old Tax Regime | New Tax Regime u/s 115BAC | ||
| Income Tax Slab | Tax Rate | Tax Slab | Income Tax Rate |
| Up to INR 3,00,000 | Nil | Up to INR 2,50,000 | Nil |
| INR 3,00,001 – INR 5,00,000 | 5% above INR 3,00,000 | INR 2,50,001 – INR 5,00,000 | 5% above INR 2,50,000 |
| INR 5,00,001 – INR 10,00,000 | INR 10,000 + 20% above INR 5,00,000 | INR 5,00,001 – INR 7,50,000 | INR 12,500 + 10% above INR 5,00,000 |
| Above INR 10,00,000 | INR 1,10,000 + 30% above INR 10,00,000 | INR 7,50,001 – INR 10,00,000 | INR 37,500 + 15% above INR 7,50,000 |
| – | – | INR 10,00,001 – INR 12,50,000 | INR 75,000 + 20% above INR 10,00,000 |
| – | – | INR 12,50,001 – INR 15,00,000 | INR 1,25,000 + 25% above INR 12,50,000 |
| – | – | Above INR 15,00,000 | INR 1,87,500 + 30% above INR 15,00,000 |
Income tax slabs for super senior citizens who are more than 80 years old are mentioned herein below:
| Old Tax Regime | New Tax Regime u/s 115BAC | ||
| Income Tax Slab | Tax Rate | Tax Slab | Income Tax Rate |
| Up to INR 5,00,000 | Nil | Up to INR 2,50,000 | Nil |
| INR 5,00,001 – INR 10,00,000 | 20% above INR 5,00,000 | INR 2,50,001 – INR 5,00,000 | 5% above INR 2,50,000 |
| Above INR 10,00,000 | INR 1,00,000 + 30% above INR 10,00,000 | INR 5,00,001 – INR 7,50,000 | INR 12,500 + 10% above INR 5,00,000 |
| – | – | INR 7,50,001 – INR 10,00,000 | INR 37,500 + 15% above INR 7,50,000 |
| – | – | INR 10,00,001 – INR 12,50,000 | INR 75,000 + 20% above INR 10,00,000 |
| – | – | INR 12,50,001 – INR 15,00,000 | INR 1,25,000 + 25% above INR 12,50,000 |
| – | – | Above INR 15,00,000 | INR 1,87,500 + 30% above INR 15,00,000 |
Income tax is liable for the earnings of the citizens with certain exemptions that they may be entitled to, based on the income tax regime that they follow. In the case of senior citizens, the source of income may include salary, pension, rent, interest on their savings, post office scheme, etc. Due to the limited earnings of senior citizens, the income tax limit for senior citizens is higher. From their total earnings, the exemption limit is followed to calculate the taxable income that the senior citizen is liable to pay income tax on. These days, there are various income tax calculators available online, that can provide a real-time view of taxable income.
They also have a column for allowable deductions based on the age range that the senior citizens can claim. As clear from the charts above, both the old and new tax regimes are available to senior citizens, and they can choose one that suits their investment behavior more. In the income tax calculators, the provision to specify the tax regime to calculate the exact tax due. It should be noted that according to the senior citizen IT slab, senior citizens with a yearly income of less than INR 3,00,000 are exempted from paying any income taxes; however, it is recommended that they file their ITR regardless. Most calculators also auto-calculate tax rates for senior citizens once the age of the taxpayer is specified.
Based on the tax calculation for senior citizens, the Income tax return on the earnings can be filed to the income tax department. While the income tax return for senior citizens is an online process, citizens above 80 years of age can also do the offline filing for their ease. Two senior citizen income tax return forms need to be filled out based on the earnings of the person.
For resident Indian senior citizens below INR 50 lakh income
For resident Indian senior citizens above INR 50 lakh income
Apart from lower IT rates for senior citizens, several other benefits are extended to senior citizens when filing their Income tax. Some of these are listed below.
To sum it up, senior citizens receive several benefits while filing their Income Tax returns. They can follow this guide and use the Income Tax Calculator to easily calculate their tax liability and find ways to reduce it under the various sections of the Income Tax Act.
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For senior citizens, up to INR 3 lakh, their income is tax-free.
You can use the tax calculator to easily list your earnings and calculate your tax liability factoring in the deductions.
Yes, for senior citizens, aged above 60 years and less than 80 years, the income tax slab is different.
The income tax limit for senior citizens is up to INR 3 lakh.
Yes, for super senior citizens, there is a standard duction of INR 50,000.
PayBima Team
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
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