Income Tax for Senior Citizens

*Additional health and education cess of 4% is levied on taxable income as per senior citizen income tax limit.

The process of tax calculation for senior citizens is like the method of tax calculation for individuals below 60 years.

Income tax for senior citizens or pensioners is levied on all sources of income such as pension, rental income, interest or earnings from savings schemes, fixed deposits, post office schemes or reverse mortgage. Apart from the standard deduction for senior citizens, tax deductions under Section 80C,  section 80D and 80DDB are also applicable.

Senior citizen income tax limit has been increased from Rs. 2.5 lakh to Rs. 3 lakh for a deduction.

During tax calculation for senior citizens, retirement benefits and gratuity must be excluded. You should also use an online calculator provided by the IT department to know income tax for senior citizens.

Enter the following details to know your approx. tax liability:

1. Assessment year for which you want to calculate income tax for senior citizens

2. Residential status, type of taxpayer

3. Income from salary

4. Income from house property if any

5. Capital gains & income from other sources

6. Profit or gains or any business or profession

7. Agricultural income if any

8. Standard deductions

9. Education cess as per your slab of income tax for senior citizens

10. Surcharge if applicable

11. Total tax liability

12. Due date of submission of ITR (income tax return)

13. Completion of assessment for ITR

14. TDS/TCS if applicable

After entering all such details as per your slab of income tax for senior citizens, you can click on ‘calculate’ to know approx. tax liability.

A citizen becomes a pensioner after they retire from a regular job, usually between 58 to 60 years. Income tax for senior citizen pensioners includes both senior (60-80 year) and super senior (80 years above) citizens.

Specific benefits under income tax for senior citizen pensioners are:

1. Tax exemption up to Rs 3 lakh for senior citizens under the old regime, whereas this limit has been 2.5 lakh under new tax regime for income tax for senior citizens

1. Under Section 80D, income tax for senior citizens is deductible up to Rs 50,000 for payments towards health insurance premium

2. Income tax for senior citizens has an exemption limit of Rs 3 lakh under the old regime of tax slabs

3. Income tax calculation for senior citizens includes an exemption on interest earned up to Rs 50,000

4. Income tax for senior citizens above 80 years (i.e. Super Senior Citizens) can file ITR – Income Tax Return – through ITR Sahaj 1 form or ITR Sugam 4 form, whichever preferred either manually or digitally

5. Income tax for senior citizen pensioners are offered a standard deduction of Rs 50,000 onpension income earned in a year

6. Income tax for senior citizens allows deductions of up to Rs 1 lakh u/s 80DDB for treatment of critical illnesses

1. Rebate u/s 87A is applicable under income tax for senior citizens if total income does not exceed Rs 5 lakh

2. Exemption of income tax for senior citizens includes payment of advanced tax, no deductions of TDS on earned interest

3. Health insurance premium deduction up to Rs 50,000 under income tax for senior citizens

4. U/s 80DDB, deduction of income tax for senior citizens include a higher deduction for specific ailments

5. Tax calculation for senior citizens excludes amount received under a reversed mortgage scheme

To claim a tax refund, you must file income tax for senior citizens.You can use following forms for filing income tax for senior citizens: