FAQs for Senior Citizens-Income Tax Department
- What are the benefits available to a senior citizen and very senior citizen in respect of tax rates?
Senior citizens and a very senior citizen are granted a higher
exemption limit as compared to normal tax payers. Exemption limit is the
quantum of income up to which a person is not liable to pay tax. The
exemption limit granted to senior citizen and very senior citizen for
the financial year 2015-16 is as follows :
| Senior citizen | Very senior citizen |
| A
senior citizen is granted a higher exemption limitcompared to
non-senior citizens. The exemption limit for the financial year 2015-16
available to a resident senior citizen is Rs. 3,00,000. In other words, a
resident senior citizen is not liable to pay any tax up to income of
Rs. 3,00,000. The exemption limit for non-senior citizen is Rs.
2,50,000. Thus, it can be observed that an additional benefit of Rs.
50,000 in the form of higher exemption limit is available to a resident
senior citizen as compared to normal tax payers. | A
very senior citizen is granted a higher exemption limit compared to
others. The exemption limit for the financial year 2015-16 available to a
resident very senior citizen is Rs. 5,00,000. In other words, a
resident very senior citizen is not liable to pay any tax up to income
of Rs. 5,00,000. The exemption limit for non-senior citizen is Rs.
2,50,000. Thus, it can be observed that an additional benefit of Rs.
2,50,000 in the form of higher exemption limit is available to a
resident very senior citizen as compared to normal tax payers. |
- At what age a person will qualify as a senior citizen and very senior citizen under the Income-tax Law?
Before understanding the age criteria, it is very important to know that
the tax benefits offered under the Income-tax Law to a senior
citizen/very senior citizen are available only to resident senior
citizen and resident very senior citizens. In other words, these
benefits are not available to a non-residenteven though he may be of
higher age. The age and other criteria to qualify as a senior citizen
and very senior citizen under the Income-tax Laware as follows :
|
Criteria for senior citizen | Criteria for very senior citizen |
| Must be of the age of 60 years or above but less than 80 year at any time during the respective year. | Must be of the age of 80 years or above at any time during the respective year. |
| Must be resident | Must be resident |
| Illustration | Illustration |
(1)
Mr. Kumar (resident in India) attained the age of 60 years during the
financial year 2015-16. Will he qualify as senior citizen under the
Income-tax Law for the financial year 2015-16?
**
Yes,
since Mr. Kumar is a resident and he attained the age of 60 years
during the year 2015-16, he will be treated as senior citizen under the
Income-tax Law for the financial year 2015-16.
(2) Mr.
Kamal (non-resident) attained the age of 60 years during the financial
year 2015-16. Will he qualify as senior citizen under the Income-tax Law
for the financial year 2015-16?
**
Mr.
Kamal is a non-resident, the benefits of senior citizen under the
Income-tax Law are available to a resident only, and hence, Mr. Kamal
will not be treated as senior citizen under the Income-tax Law for the
financial year 2015-16.
|
(1) Mr.
Raja (resident in India) attained the age of 80 years during the
financial year 2015-16. Will he qualify as very senior citizen under the
Income-tax Law for the financial year 2015-16?
**
Yes,
since Mr. Raja is a resident and he attained the age of 80 years during
the year 2015-16, he will be treated as a very senior citizen under the
Income-tax Law for the financial year 2015-16.
(2)
Mr.Rajat (non-resident in India) attained the age of 80 years during the
financial year 2015-16. Will he qualify as very senior citizen under
the Income-tax Law for the financial year 2015-16?
**
Mr.Rajat
is a non-resident, the benefits of very senior citizen under the
Income-tax Law are available to a resident only and, hence, Mr.Rajat
will not be treated as very senior citizen under the Income-tax Law for
the financial year 2015-16.
|
- Is there any special benefit available under the Income-tax law to very high aged person, i.e., very senior citizens?
Yes, the Income-tax Law very well takes care of very senior citizens
of the nation by offering special tax benefits to high aged person (80
year or above).
- Is there any special benefit available under the Income-tax law to senior citizens?
Yes, the Income-tax Law very well takes care of the senior citizens of
the nation by offering them several tax benefits.In this part you can
gain knowledge of various benefits offered by the Income-tax Law to
senior citizens.
- Is a very senior citizen granted exemption from e-filing of income tax return?
From the assessment year 2015-16 onwards any taxpayer filing return of
income in Form ITR 1/2/2A and having a refund claim in the return or
having total income of more than Rs. 5,00,000 is required to furnish the
return of income electronically with or without digital signature or by
using electronic verification code. However, Income-tax Law grants
relaxation from e-filing in above case to very senior citizen.
In
other words, 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 (as the case may be) is not mandatory. However,
he may go for e-filing if he wishes.
- Is a retired senior citizen granted exemption from payment of advance tax?
As per section 208, 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. As per section 208 a resident
senior citizen (i.e., an individual of the age of 60 years or above
during the relevant financial year) not having any income from business
or profession, is not liable to pay advance tax.
-
What are the benefits available in respect of expenditure incurred on
account of medical treatment of specified diseases on treatment of a
senior citizen or a very senior citizen?
Section 80DDB
of the Income-tax Law gives various provisions relating to tax benefits
available on account of expenditure on medical treatment of specified
diseases. Click the following link to know about details of
section 80DDB which covers the details of special benefits under
section 80DDBavailable to a senior citizen or very senior citizen. Check page 8 topic
"Deduction in respect of expenditure on medical treatment of specified diseases [ Section 80DDB]"
http://www.incometaxindia.gov.in/tutorials/20.%20tax%20benefits%20due%20to%20health%20insurance.pdf
-
What are the benefits available in respect of expenditure incurred on
account of medical insurance premium/ medical expenditure to a senior
citizen/very senior citizen and on account of?
Section 80D
of the Income-tax Law gives various provisions relating to tax benefits
available on account of payment of medical insurance premium and other
related items. Click the following link to know about details of
section 80D which covers the details of special benefits under
section 80D available to a senior citizen and very senior citizen.. Check page 5 topic
"Deduction in respect of medical insurance premium [ Section 80D]"
http://www.incometaxindia.gov.in/tutorials/20.%20tax%20benefits%20due%20to%20health%20insurance.pdf
[As amended upto Finance Act, 2015]
Source: www.incometaxindia.gov.in
