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Senior Citizen Tax Slabs: How Do They Differ In Old And New Regimes?

Senior and super senior citizens get higher tax relief than ordinary taxpayers; learn more about the tax slabs and benefits.

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Outlook Money
December 19, 2023
Senior Citizen Tax Slabs

Senior Citizen Tax Slabs

Senior citizens aged 60 and older but less than 80 and super seniors aged 80 and older receive higher tax benefits than ordinary taxpayers under the Income-tax Act of 1961. Learn more about the Senior Citizen Tax Slabs and benefits.

The basic exemption limit for senior citizens is Rs. 3 lakh, compared to Rs. 2.50 lakh for an ordinary individual taxpayer. For super senior citizens, the limit is Rs. 5 lakh in a financial year.

Every individual whose estimated tax liability in a financial year is Rs. 10,000 or more is liable to pay advance tax. However, senior citizens need not pay any advance tax, provided they do not have income under the “Profits and Gains of Business or Profession” head.

Seniors can also claim a standard deduction of up to Rs. 50,000 against pension income, as in the case of an ordinary taxpayer who claims a similar deduction against salary income.

Income Tax Slabs for Senior Citizens Aged 60-80: (Old Regime)

  • There is no tax liability for income up to Rs. 3 lakh
  • For income of more than Rs. 3 lakh and Rs. 5 lakh, the tax liability is 5 percent. However,
    if the taxable income is up to Rs. 5 lakh, the tax liability is nil for relief u/s 87A.
  • For income of more than Rs. 5 lakh to Rs. 10 lakh, the tax rate is Rs. 10,000 plus 20 percent of the amount above Rs. 5 lakh.
  • Above Rs. 10 lakh, the tax rate is Rs. 1.10 lakh plus 30 per cent of the amount above Rs. 10 lakh.
  • However, there are other charges. A surcharge will apply if the taxable income is over Rs. 50 lakh, the percentage may vary from 10-37 percent, subject to marginal relief.
  • There is also a health and education cess, which is 4 percent of income tax plus a surcharge.

Income Tax Slabs for Super Senior Citizens Aged 80 and Older: (Old Regime)

  • For income up to Rs. 5 lakh, there is zero tax.
  • However, for income over Rs. 5 lakh up to Rs. 10 lakh, it is 20 percent above Rs. 5 lakh.
  • An income of above Rs. 10 lakh, the tax rate is Rs. 1 lakh plus 30 percent above Rs. 10 lakh.
  • The surcharge and health and education cess remain the same for this age group.

Income Tax Slabs for Senior Citizens and Super Senior Citizens: (New Regime)

Under section 115BAC of the New Tax Regime, the income tax rates and the slabs are the same for senior and super-senior citizens.

  • For income up to Rs. 2.5 lakh, there is no tax.
  • For income of more than Rs. 2.5 up to Rs. 5 lakh, which is 5 percent above Rs. 2.5 lakh.
  • Over Rs. 5 lakh up to Rs.7.5 lakh, the tax amount is Rs. 12,500 plus 10 per cent above Rs. 5 lakh.
  • Over Rs. 7.5 lakh up to. 10 lakh, it is Rs. 37,500 plus 15 per cent above Rs. 7.5 lakh.
  • Over Rs. 10 lakh up to Rs. 12.5 lakh, the amount is Rs. 75,000 plus 20 per cent above Rs. 10 lakh.
  • For income of more than Rs. 12.5 lakh up to Rs. 15 lakh, it is Rs. 1.25 lakh plus 25 percent above Rs 12.5 lakh.
  • Above Rs. 15 lakh, it is Rs. 1,87,500 plus 30 per cent above Rs. 15 lakh.

Additionally, senior citizens can avail of a maximum deduction of Rs. 50,000 under section 80D for health insurance premiums, whereas it is Rs. 25,000 for ordinary citizens. However, if the expenses incurred for a dependent senior citizen, the entitlement is Rs. 1 lakh in a financial year.

Individual taxpayers are allowed a maximum deduction of Rs. 10,000 under section 80TTA for interest income from savings bank accounts. However, for a senior citizen, it is up to Rs. 50,000 under section 80TTB.

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