Tax Benefits available to Senior Citizen

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Senior citizens and a very senior citizen are granted a higher exemption limit as compared to normal tax payers i.e., a quantum of income up to which they are not liable to pay tax.

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Senior citizen
A resident of the age of 60 years or above but less than 80 year at during the respective years. A senior citizen is granted a higher tax exemption limit compared to non-senior citizens. The exemption limit for the financial year 2016-17 available to a resident senior citizen is Rs. 3,00,000 i.e., a resident senior citizen is not liable to pay any tax up to income of Rs. 3,00,000 compared to the exemption limit for non-senior citizen which is Rs. 2,50,000 giving an additional benefit of Rs. 50,000 in the form of higher exemption limit to a resident senior citizen as compared to normal tax payers.
Very senior citizen
A resident of the age of 80 years or above at any time during the respective year. A very senior citizen is granted a higher exemption limit compared to other citizen. The exemption limit for the financial year 2016-17 available to a resident very senior citizen is Rs. 5,00,000 i.e., 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 giving them an additional benefit of Rs. 2,50,000 in the form of higher exemption limit as compared to normal tax payers.
Exemption from payment of advance tax
Section 208 of income tax act gives relief from payment of advance tax to a retired senior citizen. As per this section 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.
Exemption from E-filing for very senior citizens
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 is not compulsory. However, he may go for e-filing if he wants.
Benefits in respect to the expenditure on account of medical treatment and treatment of a specific disease
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 to the senior citizen.
Benefits in respect to the expenditure on account of medical insurance premium or treatment
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. “Deduction in respect of medical insurance premium [section 80D]”
Income-tax Law very well takes care of the senior citizens and very senior citizens (80 year or above) of the nation by offering special tax benefits to high aged person.


Author Name: Higrit