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8 Must Know Tax Benefits For Senior Citizens
In India, senior citizens and very senior citizens are allowed a higher exemption limit as compared to normal tax payers.
Individuals who are above the age of 60 years, but less than 80 years at any time during the respective year will be eligible for tax benefits under income tax act.
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Very senior citizen, is an individual who is 80 years or above at any time during the respective year.
8 Tax benefits for senior Citizen
1. The exemption limit for the senior citizen for the financial year 2015-16 to a resident is Rs 3,00,000. Means, a resident senior citizen is not liable to pay any tax up to income of Rs 3,00,000.
2. The exemption limit for the very senior citizen for the financial year 2015-16 available to a resident is Rs 5,00,000.
3. A very senior citizen filing his return of income in Form ITR 1/2/2A and having total income of more than Rs 5,00,000 or having a refund claim can file his return of income in paper mode, i.e., for him e filing of ITR 1/2/2A is not mandatory. However, he may go for e-filing if he wishes.
4. 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 208 gives relief from payment of advance tax to a retired senior citizen. A resident senior citizen not having any income from business or profession, is not liable to pay advance tax.
5. A senior citizen can avail of higher deduction of Rs 30,000 u/s Section 80D from A.Y. 2016-17.
6. With effect from A.Y. 2016-17 any payment made on account of medical expenditure in respect of a very senior citizen, can be claimed as tax deduction, provided that there is no payment made to keep in force an insurance on the health of such person.
7. Senior citizens can claim exemption on the tax deducted at source (TDS) on interest income earned on deposits by submitting Form 15H to the bank or financial institutions.
8. Section 80DDB, in case of expense on medical treatment of specified ailments if the patient is a senior citizen, then deduction of Rs 60,000 is allowable.
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