Asked by: Efisio Parcerisas
personal finance personal taxes

What is the tax exemption limit for senior citizens in India?

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As per current income tax laws, the basic income threshold exempt from tax for senior and super senior citizens is Rs 3 lakh and Rs 5 lakh respectively. This itself gives them some tax relief in the existing structure.


Regarding this, what is the tax exemption limit for senior citizens?

While the minimum exemption limit for those who fall in the senior citizens category is Rs. 3 lakh, those who qualify as senior citizens are exempt from tax if their income is under Rs. 5 lakh. Apart from this, the slabs remain the same for both groups of taxpayers.

Secondly, what is the standard deduction for senior citizens in 2019 in India? Slabs have remained unchanged for FY 2019-20 and AY 2020-21 for all citizens (including Senior Citizens). Standard Deduction for salaried taxpayers has been increased from Rs. 40,000 to Rs. 50,000.

In this manner, what is the income tax limit for senior citizen in India?

Income Tax Limit for Senior citizens The basic exemption limit for Senior citizens who are aged between 60 to 80 years is Rs. 3 lakhs. Senior citizens can avail a plethora of benefits in terms of interest earned on savings schemes. Most banks provide a higher interest rate to senior citizens in comparison to the rest.

What is the standard deduction for senior citizens in 2018?

The benefit of standard deduction adds to the list of goodies that Budget 2018 had to offer to senior citizens. As per the amendment made through Finance Act 2018 in section 16 of the Income-tax Act, 1961, a person having income from salary can claim a deduction of up to Rs40,000 as standard deduction.

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How much amount of FD interest is tax free?

2) The interest income from bank fixed deposit is fully taxable, unlike savings bank account where one gets income tax exemption on the interest earned up to Rs 10,000 in a year. In case of FDs, banks deduct tax at source (TDS) at the rate of 10 per cent if the interest income for the year is more than Rs 10,000.

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What is the standard deduction for AY 2019 20?

First you can claim standard deduction of Rs 50,000 for FY 2019-20 as against Rs 40,000 available for current financial year as Budget 2019 proposes to hike this standard deduction by Rs 10,000.

Aramata Balbuena

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How much interest is tax free for senior citizen?

Currently, the interest earned on a savings account, whether held with a bank (nationalised or co-operative) or post office, is allowed as deduction for a maximum of up to Rs 10,000 a year under section 80TTA. Section 80TTA of the Income-tax Act was introduced for the first time in the financial year 2013-14.

Domitila Eckardt

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What is the standard deduction for senior citizens in 2019?

The standard deduction amounts will increase to $12,200 for individuals, $18,350 for heads of household, and $24,400 for married couples filing jointly and surviving spouses. For 2019, the additional standard deduction amount for the aged or the blind is $1,300.

Winston Lopez Serrano

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What is the income tax limit for pensioners?

For senior citizens (aged 60 years or above but less than 80 years), income up to Rs 3 lakh is exempt from tax. Income from Rs 300,001 to Rs 5 lakh is taxed at 5 per cent, from Rs 500,001 to Rs 10 lakh at 20 per cent and above Rs 10 lakh at 30 per cent.

Nasser Gor

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What age you stop paying taxes?

When seniors must file
For tax year 2018, you will need to file a return if you are unmarried and at least 65 years of age, and your gross income is $13,600 or more. However, if you live on Social Security benefits, you don't include this in gross income.

Yelena Vilabrille

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Do senior citizens pay taxes in India?

The senior citizens who are residents of India will have to pay no tax on their interest earned up to Rs. 50,000/- in a financial year. Applicable under section 80 TTA of Income Tax, this will take into account interest earned in the savings bank account, deposits in a bank, and/or deposits in post-office.

Estefana Quiquemelle

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Is FD interest taxable for senior citizens?

Taxes on Senior Citizen FDs
The interest earned on senior citizen fixed deposits may be liable for income tax based on the applicable laws. These taxes, if any, are deducted at the source however, in case you are not liable to pay taxes you can submit forms 15G or 15H to the banks.

Daria Salinas

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Is TDS applicable to senior citizens?

TDS for senior citizens: For those who are 60 years or older, TDS will only be deducted if the interest income exceeds Rs. 50,000 in a given financial year. Earlier, the limit was Rs. 10,000 but this limit was increased to Rs.

Yongqin Buchau

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Aniko Felpeto

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Is standard deduction available for senior citizen?

60,000 and Rs. 80,000 respectively, currently provided for under the section.

Added benefits by Budget 2018.
Exemption/Scheme FY 2017-18 FY 2018-19
Exemption on medical expenditure for specific critical illnesses Exempted up to Rs. 60,000 (senior) and Rs. 80,000 (super senior) Increased to Rs. 1 lakh

Caiqin Leray

Teacher

How much is tax exemption for 2019?

You can avail of the zero tax benefit announced in Budget 2019 but you still need to file your income tax return (ITR). The income tax exemption limit for all citizens below 60 years still remains at Rs 2.5 lakh and for senior citizens Rs 3 lakh.

Renata Aristregui

Teacher

Who is senior citizen as per income tax?

Under the Income-tax Act, 1961, a 'Senior Citizen' has been defined as an individual who attains the age of 60 years at any time during a financial year, while an individual who is 80 years or more is categorised as 'Very Senior Citizen'. These categories of individuals enjoy some additional benefits under the Act.

Josefine Inselvini

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How can senior citizens save tax?

In case you are a senior citizen looking out for the best tax-saving tips, you may go through the following four options.
  1. 1.Invest in Senior Citizen's Saving Scheme.
  2. 2.Avail of benefits under the income tax slab rates.
  3. 3.Invest in health insurance.
  4. 4.Invest in five-year fixed deposits (FDs)

Yaqin Biryulin

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What is standard deduction in income tax?

Assuming the individual is claiming these tax breaks: standard deduction of Rs 50,000, deduction of Rs 1.5 lakh under section 80C and Rs 25,000 under section 80D for medical premium and HRA exemption (varied as per salary income level).

Salahdin Guldenpfennig

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Who will give form 16 for pensioners?

In most of the cases pension is disbursed through public sector banks in that event you can seek form 16 from Bank manager who is drawing and Disbursing officer to pensioners drawing pension from his bank and only in the event of any income tax is deducted at source .

Monty Guesdon

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Is standard deduction available for pensioners?

"The standard deduction of up to Rs 50,000 is available for income from salary. " CBDT has clarified that the maximum standard deduction would be Rs 50,000 or the amount of pension, whichever is less. I earn a pension of Rs 26,736 from the EPFO and interest income of Rs 3 lakh from fixed deposits.

Hilma Riola

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Is standard deduction of Rs 40000 applicable to pensioners?

Pension from ex-employers eligible for Rs 40000 standard deduction. Accordingly, any taxpayer who is in receipt of pension from his former employer shall be entitled to claim a deduction of Rs 40,000 or the amount of pension, whichever is less, under Section 16 of the (I-T) Act," CBDT said in a statement.

Grau Richart

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What is the income tax slab for AY 2020 21?

Income Tax Slab Rate for AY 2020-21 for Individuals:
Surcharge: - 10% of income tax where total income exceeds Rs. 50,00,000. 15% of income tax where total income exceeds Rs. 1,00,00,000. Health and Education cess: - 4% of income tax and surcharge.