Senior Citizen - As per the Indian IT Act, any individual who has attained the age of 60 years or above qualifies to be considered as a senior citizen. Earlier, the qualifying age was 65 years, but was reduced to 60 years from FY 2011-12. Super Senior Citizen - As per the Indian IT Act, any individual who has attained the age of 80 years or above qualifies to be considered as a senior citizen.
Income Tax Exemptions Available for Senior Citizens are listed below:
Resident Senior Citizens & Resident Super Senior Citizens are entitled for higher tax exemption limits as compared to normal citizen. Basic Tax Exemption Limit for them is as under:
Senior citizen can submit form no. 15H at the bank branches on which they maintain their Fixed Deposits to avoid deduction of tax (TDS) from interest paid or credited to them
A reverse mortgage is the “opposite” of a conventional home loan. A reverse mortgage enables a senior citizen to receive a regular stream of income from a lender (a bank or a financial institution) against the mortgage of his home. The borrower (i.e. the individual pledging the property), continues to reside in the property till the end of his life and receives a periodic payment on it. The money received through a reverse mortgage loan is not considered as income, and is free from any tax liability, making it an attractive option for senior citizens.
Very senior citizens may not be comfortable with modern day technology and the IT department has granted a relaxation for all taxpayers who fall in the category for mandatory e-filing. Anyone who qualifies as a very senior citizen does not necessarily need to use the e-filing mode to opt for a refund claim and can make the request in a paper format.
Any payment made by a senior citizen towards health insurance premium gets tax exemption under section 80D of Income Tax Act 1961. As a senior citizen, you can avail a tax deduction of Rs. 30,000 from the assessment year 2016-17. If you are above 60 years of age and are also paying medical insurance premium for your parents above 60 years, you can get a combined tax deduction of Rs. 60,000.
- Deduction u/s 80DDB for senior citizen is Rs. 60,000 instead of Rs. 40,000 in other cases.
- Deduction u/s 80DDB for senior citizen is Rs. 80,000 .
Appreciating the concern of these taxpayers and with a view to mitigate their hardships, Central Board of Direct Taxes has reviewed its scrutiny selection procedure. In order to redress the grievance, it has been decided that during the financial year 2011-12, cases of senior citizens and small taxpayers, filing income-tax returns in ITR-1 and ITR-2 will be subjected to scrutiny only where the Income Tax department is in possession of credible information. Senior citizens for this purpose would be individual taxpayers who are 60 years of age or more.
As per section 208 From Financial year 2012-13 resident senior citizen, not having any income chargeable under the head “Profits and gains of business or profession”, shall not be liable to pay advance tax and such senior citizen shall be allowed to discharge his tax liability (other than TDS) by payment of self assessment tax.
Senior Citizens & Super Senior Citizens must have financial freedom in their hay days , analyzing the need – the government has actively make changes & allowed various tax deductions to make the ‘Oldies felt like Goldies’.