Benefits for Senior Citizen/Super Senior Citizen in Income Tax.

Benefits for Senior Citizen/Super Senior Citizen in Income Tax.

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The Income Tax Act identifies a senior citizen as a person who is 60 years of age or more at any time during the previous year and one who has completed the age of 80 years during the previous year or in a year prior to that is a super senior citizen. It provides for special benefits for such persons

The following are the special benefits for senior citizen and super senior citizen:Basic exemption limit for senior citizen and super senior citizen is Rs 3,00,000 and Rs.5, 00,000.

A deduction upto Rs 10,000 is allowed under section 80TTA of Income Tax Act 1961 to an assessee in respect of interest income from savings account w.e.f A.Y 2019-20.  Section 80TTB of Income Tax Act 1961 allows a deduction upto Rs 50,000 in respect of interest income from deposits held by senior citizens. Deduction shall be allowed upto Rs.50, 000 for FDR and Saving Interest u/s 80TTB of Income Tax Act 1961.

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 Income Tax Act 1961. Moreover w.e.f 01.04.2018 the limit for TDS on interest on deposits u/s 194A has been increased to Rs 50,000 for senior citizen. Which means if the amount of interest does not exceeds Rs 50,000 no TDS shall be deducted.

In case the persons is a senior citizen and mediclaim insurance premium is paid for such senior citizen than under section 80D of Income Tax Act 1961deduction is allowed of Rs. 30,000. For uninsured super senior citizens & senior citizen medical expenditure incurred up to Rs 30,000 shall be allowed as a deduction under section 80D of Income Tax Act 1961.

Note: The above limit of Rs 30000 has been increased to Rs 50000 from A.Y 2019-20.

Section 80DDB of Income Tax Act 1961 provides deduction to an assessee in case of expense on medical treatment of specified ailments. Generally this deduction is available upto Rs 40,000 . However , if the patient is a senior citizen, then deduction of Rs 60,000 is allowable and Rs 80,000 for super senior citizen.

Note: From A.Y 2019-20 the amount of deduction shall be Rs 1,00,000 for both senior and super senior citizen.

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