The Union Budget 2021 has made a decent concession for senior citizens above 75 years of age. There would be no income tax filing for senior citizens above 75 years of age having only pension and interest income.
What this means is that senior citizens with other forms of income like rental income, business income etc., need to file their returns. This is a welcome move given the fact that many senior citizens have been hard hit by falling interest rates.
Interestingly, senior citizens above 75 years who may have large amount of interest earned through fixed deposits would also now be exempted from filing their tax returns.
Interest rates have fallen through the roof and the fall in the interest rates have hit senior citizens hard.
Under section 80TTB currently, seniors can claim up to Rs 50,000 interest income received from banks and post offices as a deduction from their income thereby making this type of interest income for senior citizens effectively tax exempt up to Rs 50,000.
In the Union Budget of 2018 the limit on health insurance premiums paid that can be claimed as a deduction from income from Rs 30,000 to Rs 50,000 for senior citizens. Over the last few years, there have been good tax and other benefits that have been granted to senior citizens.