Key Benefits For Senior Citizens, Very Senior Citizens In Respect Of Tax Rates

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, according to the official website of Income Tax India.

The exemption limit granted to senior citizen and very senior citizen for the financial year 2022-23 is as follows:

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, according to incometaxindia.gov.in.

Very Senior Citizen: 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.

At what age a person will qualify as a senior citizen and very senior citizen under the income tax law?

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: Must be of the age of 60 years or above but less than 80 year at any time during the respective year and must be resident.

Criteria For Very Senior Citizen: Must be of the age of 80 years or above at any time during the respective year and must be resident.