For a given financial year, the income earned in the previous year is assessed in the following year referred as the assessment year, so for the financial year 2017, the return has to be filed now. With not much time now, you should be fast gearing to get it done. As per the new Budget, tax returns have to be mandatorily filed by all individuals with earnings over Rs. 2.5 lakh in a year. However, for senior citizens aged 60 years and above , the benchmark is kept at Rs. 3 lakh. It is also mandated that the tax return be filed electronically.
For super senior citizens aged over 80 years, the limit has been kept at Rs. 5 lakh. However, the super senior citizens are allowed to file tax return physically on the notion that these individuals are not computer -savvy.
Also, an exemption in this regard is available to individuals and HUFs whose income is less than Rs 5 lakhs and also haven't made any claims in respect of refund.
Irrespective of the gender, the following tax rates shall apply for senior citizens for the different income group; for income less than 3 lakh, no tax shall apply. For an yearly earning between 3 lakh and 5 lakh, 5% tax incidence shall follow. For earning upto 10 lakh, 20% tak shall apply and for any amount over Rs. 10 lakh; 30% tax rate shall be applicable.
In cases, where the total income for the year exceeds Rs. 50 lakh, a surcharge equal to 10% of income tax shall apply. For income over 1 crore, 15% surcharge on income tax will be levied.
Cess @3% will be charged on total income tax and surcharge.
So, with no major difference in tax return filing, a senior citizen can select the appropriate ITR form basis his or her income stream and e-file the return.