India’s revenue tax framework is predicated on a progressive taxation system, which signifies that people with increased revenue ranges pay a better proportion of their revenue as taxes. The coverage additionally makes provision for sure exemptions to senior residents and tremendous senior residents who’ve retired from their energetic skilled lives.
Senior residents are these people who belong to the age teams of 60 years and above, however beneath 80 years. Super senior residents belong to the age group of 80 years and above. Exemptions and advantages supplied to this group of taxpayers, below the prevailing Income Tax legal guidelines, have been designed to supply extra reduction contemplating their decrease incomes capability and better medical bills.
The revenue tax advantages for senior residents and tremendous senior residents for the monetary 12 months 2023-24 are fairly related, with the primary distinction being the upper fundamental exemption restrict.
Also Read: Should Senior Citizens File Income Tax Return?
Here’s a comparability of tax advantages accessible to each teams.
Basic Exemption Limit: For senior residents, the essential exemption restrict is Rs 3,00,000, that means that if the revenue of a senior citizen is Rs 3,00,000, or much less, they won’t should pay any revenue tax. For tremendous senior residents, the essential exemption restrict is Rs 5,00,000. This increased exemption restrict is supplied to tremendous senior residents to make sure that they’ve a better disposable revenue to fulfill their medical and different bills. However, below the New Tax Regime the exemption restrict is Rs 2,50,000 for each the classes of taxpayers.
Tax Slabs:
For senior residents, the tax slab charges are as follows:
– Up to Rs. 3,00,000: No tax
– Rs. 3,00,001 to Rs. 5,00,000: 5 per cent
– Rs. 5,00,001 to Rs. 10,00,000: Rs 10,000 + 20 per cent above Rs. 5 Lakh
– Above Rs. 10,00,000: Rs 1,10,000+ 30 per cent above Rs. 10 lakh
Tax Slabs for tremendous senior residents:
– Up to Rs. 5,00,000: No tax
– Rs. 5,00,001 to Rs. 10,00,000: 20 p.c
– Above Rs. 10,00,000: 1,00,000+ 30 per cent above Rs. 10 lakh
Deductions:
Both senior residents and tremendous senior residents are eligible for a better deduction of Rs 1 lakh below Section 80D for medical insurance coverage premiums. Additionally, they’re additionally eligible for a deduction of Rs 50,000 below Section 80TTB for curiosity revenue from financial savings accounts and deposits.
Tax Rebate:
Senior residents are eligible for a tax rebate of Rs 12,500 if their whole revenue is lower than Rs 5,00,000. Super senior residents are eligible for a tax rebate of Rs 50,000 if their whole revenue is lower than Rs 5,00,000.
Read all of the Latest Business News right here
