Tax Benefits Available to Senior Citizens
A person becomes senior citizen under Income Tax Act in any year after attaining the age of 60 even for one day. Once he attains 60 years, his status as senior citizen in that financial year, gives him some relief. There are not many income tax exemptions available for senior citizens. These are listed below for Financial Year 2015-2016 (1st April 2015 to 31st March 2016): -
1. Higher Exemption Limit:
Exemption limit for Senior Citizens is Rs. 3,00,000. Very Senior citizen above the age of 80 years are entitled to higher exemption Limit of Rs. 5,00,000. .
2. Reverse mortgage for senior citizens:
Reverse mortgage provides that a senior citizen will be able to avail of monthly income streams by mortgaging a house owned by him.
3. Tax benefits on medical insurance:
A senior citizen can avail deduction of Rs 30,000 u/s Section 80D.
4. Tax benefit in respect of Expense on medical expenditure in respect of a very senior citizen 80 yrs. age and above:
Any payment made on account of medical expenditure in respect of a very senior citizen, if no payment has been made to keep in force an insurance on the health of such person, which does not exceed thirty thousand rupees shall be allowed as deduction under section 80D.
5. Higher Deduction u/s 80DDB for Senior Citizens and Very Senior Citizens:
Section 80DDB provides deduction to an assessee in case of expense on medical treatment of specified ailments (such as AIDS, cancer and neurological diseases). For a senior citizen, deduction of Rs 60,000 and for very senior citizen Rs.80000 is allowable.
6. No Routine Income Tax Scrutiny of Senior Citizens
7. Senior Citizens not having Business Income are Exempt From Advance tax payment
8. 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.
9. 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.
10. Exemption from e-filing of income tax return to very senior citizen:
A very senior citizen 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., filing of ITR 1/2/2A. However, he may go for e-filing if he wishes. more
1. Higher Exemption Limit:
Exemption limit for Senior Citizens is Rs. 3,00,000. Very Senior citizen above the age of 80 years are entitled to higher exemption Limit of Rs. 5,00,000. .
2. Reverse mortgage for senior citizens:
Reverse mortgage provides that a senior citizen will be able to avail of monthly income streams by mortgaging a house owned by him.
3. Tax benefits on medical insurance:
A senior citizen can avail deduction of Rs 30,000 u/s Section 80D.
4. Tax benefit in respect of Expense on medical expenditure in respect of a very senior citizen 80 yrs. age and above:
Any payment made on account of medical expenditure in respect of a very senior citizen, if no payment has been made to keep in force an insurance on the health of such person, which does not exceed thirty thousand rupees shall be allowed as deduction under section 80D.
5. Higher Deduction u/s 80DDB for Senior Citizens and Very Senior Citizens:
Section 80DDB provides deduction to an assessee in case of expense on medical treatment of specified ailments (such as AIDS, cancer and neurological diseases). For a senior citizen, deduction of Rs 60,000 and for very senior citizen Rs.80000 is allowable.
6. No Routine Income Tax Scrutiny of Senior Citizens
7. Senior Citizens not having Business Income are Exempt From Advance tax payment
8. 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.
9. 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.
10. Exemption from e-filing of income tax return to very senior citizen:
A very senior citizen 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., filing of ITR 1/2/2A. However, he may go for e-filing if he wishes. more
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senior citizen should be allowed to take medical check up at private hospital at nominal fee or without any fee more
Jan 29
Dear Mr. Mahadev Dev, The increased rate of 9.3% is applicable to SCSS accounts opened after 1-4-2015. The existing accounts will get 9% only. If you want to close the account after One year but before Two years then deduction of 1.5% of deposit is made. If you close after Two years deduction of 1% of deposit is made by the bank. more
Dec 16
Thanks Sri Goyal ji. I realized my posting was wrong after sending. Any thing that's is contracted will be in force irrespective of changes. But let us hope the government will consider the increase in interest rates in view of the current trends. more
Dec 16
