The deadline to file income tax returns (ITRs) for the financial year 2022-23 (assessment year 2023-24) is July 21. Senior citizens, however, get several tax benefits under the Income Tax (IT) Act, 1961.
Who are ‘senior citizens’?
Under the IT Act, any resident Indian who is at least 60 years old, is a ‘senior citizen.’
Exemption limit for senior citizens
Under the old regime, the exemption limit is ₹3 lakh for seniors, and ₹5 lakh for ‘super seniors’ (80 years and above). In the new regime, however, both senior and ‘super senior’ citizens get ₹2.5 lakh as basic exemption limit, just like a regular taxpayer.
Benefits for senior citizens
Only residents of India get to make use of these ‘special benefits,’ which are available under the payment of advance tax, standard deductions, deductions under medical insurance premiums, deductions for interest earned from banks and post offices, etc.
Benefits in details…
(1.) Higher medical insurance premium deductions (Section 80D of IT Act)
(2.) For interest income, an exemption under Section 80TTB.
(3.) Tax benefits against the cost incurred to purchase health or critical illnesss insurance (Section 80D). ₹25,000 maximum deduction for self, spouse, and dependent children, and ₹50,000 if one or both parents above 60 years of age.
(4.) Benefits for preventive health check-ups of ₹5,000 (Section 80D).
