InvestorQ : What are the special benefits I can get as a senior citizen to save tax?
ananya Sing made post

What are the special benefits I can get as a senior citizen to save tax?

Answer
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1 year ago


  • The first and foremost benefits a senior citizen can get is the slab rates as a senior citizen can exempt from paying tax upto 3 lakh while non-senior citizen is exempted only up to 2.5 lakh. In case of super-senior citizens, that is individual above 80 years, the tax exemption is up to 5 lakhs
  • Senior citizens are also exempted from paying interest income up to Rs. 50,000 as per Section 80TTB of income tax law. However,  interest amount earned above Rs. 50,000 will be treated as per tax slab rates.
  • Under Section 80D non-senior citizen can claim a deduction for a medical insurance premium up to Rs. 25000. For senior citizen the deduction is Rs. 50,000 and super-senior citizen can claim a deduction for medical insurance premium plus the expense amount that has been incurred on treatment.
  • Senior- citizens that do not indulge in any business are entitled to pay only for Self Assessment Tax on their total income and are not required to pay Advance Tax.
  • Under section 80DDB Assessee can claim deduction upto Rs. 1,00,000 on medical treatment of specified ailments for their senior or super-senior citizen dependent.