Tax Benefits Available to Senior Citizens
For Financial Year 2017-18 and Assessment Year 2018-19
1. Higher Exemption Limit for Senior Citizens:-
Qualifying age for Senior Citizens is now 60 years and exemption limit for Senior Citizens is Rs. 3,00,000. A new category of Very Senior Citizens, 80 years and above, has been created who will be eligible for a higher exemption limit of Rs. 5,00,000.
2. Tax benefits on medical insurance hiked for Senior Citizens:-
A senior citizen can avail of higher deduction of Rs 30,000 u/s Section 80D on Mediclaim Insurance premium paid.
3. Tax benefit in respect of Expense on medical expenditure in respect of a very senior citizen (80 years and above):-
Medical expenditure of Rs.30,000 shall be allowed as deduction under section 80D, in respect of a very senior citizen, if he does not have any Mediclaim insurance policy.
4. Higher Deduction u/s 80DDB for Senior Citizens and Very Senior Citizens:-
Section 80DDB provides deduction of Rs 60,000 in case of expense on medical treatment of specified ailments to a senior citizen.
Higher limit of deduction of up to eighty thousand rupees is allowable, for the expenditure incurred in respect of the medical treatment of a “very senior citizen”.
5. Senior Citizens not having Business Income Exempt From Advance tax payment :-
A 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.
6. Senior citizens receive a higher interest (up to 50 bps) on a 5-year fixed deposit, which is eligible for deduction from the total income under Section 80C.
7. Senior citizens can claim exemption on the tax deducted at source (TDS) on interest income earned on deposits. It can be done by submitting Form 15H under Section 197 of the IT Act.
8. Exemption from e-filing of income tax return to very senior citizen:-
From the assessment year 2017-18 onwards Income-tax Law grants relaxation from e-filing to very senior citizen having total income of more than Rs. 5,00,000. more
1. Higher Exemption Limit for Senior Citizens:-
Qualifying age for Senior Citizens is now 60 years and exemption limit for Senior Citizens is Rs. 3,00,000. A new category of Very Senior Citizens, 80 years and above, has been created who will be eligible for a higher exemption limit of Rs. 5,00,000.
2. Tax benefits on medical insurance hiked for Senior Citizens:-
A senior citizen can avail of higher deduction of Rs 30,000 u/s Section 80D on Mediclaim Insurance premium paid.
3. Tax benefit in respect of Expense on medical expenditure in respect of a very senior citizen (80 years and above):-
Medical expenditure of Rs.30,000 shall be allowed as deduction under section 80D, in respect of a very senior citizen, if he does not have any Mediclaim insurance policy.
4. Higher Deduction u/s 80DDB for Senior Citizens and Very Senior Citizens:-
Section 80DDB provides deduction of Rs 60,000 in case of expense on medical treatment of specified ailments to a senior citizen.
Higher limit of deduction of up to eighty thousand rupees is allowable, for the expenditure incurred in respect of the medical treatment of a “very senior citizen”.
5. Senior Citizens not having Business Income Exempt From Advance tax payment :-
A 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.
6. Senior citizens receive a higher interest (up to 50 bps) on a 5-year fixed deposit, which is eligible for deduction from the total income under Section 80C.
7. Senior citizens can claim exemption on the tax deducted at source (TDS) on interest income earned on deposits. It can be done by submitting Form 15H under Section 197 of the IT Act.
8. Exemption from e-filing of income tax return to very senior citizen:-
From the assessment year 2017-18 onwards Income-tax Law grants relaxation from e-filing to very senior citizen having total income of more than Rs. 5,00,000. more
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