Income tax is a portion of your annual income that is paid to the government at the end of every financial year. This tax money is used to fund various developmental activities, build infrastructure and for defence purposes. The government provides various tax benefits and tax exemptions to certain categories of people such as sportspersons, women and senior citizens. This is done to encourage them to continue earning, investing and providing for themselves.
Those who attain the age of 65 years and above are eligible for the following exemptions extended by the government:
- Section 88 of Finance Act, 1992, provides income tax rebate of up to Rs. 15,000 or actual tax whichever is less to senior citizens who have attained the age of 65 years at any time during the relevant previous year.
- Senior citizens are excluded from the “One by Six” scheme for filing the Income Tax Return under provision Section 139(1).
- For senior citizens, the deduction in respect of medical insurance premium is up to Rs. 15,000/- under Section 80 D.
- Separate counters are marked for senior citizens at the time of filing Income Tax Returns. Senior citizens who are 65 years and above as on 31st March of the assessment year should be pensioners. They should come personally, if they wish for priority while submitting their Income Tax Returns. Besides, on the spot assessment facility is also provided.
The government assigns special priority towards senior citizens by providing them tax benefits higher than that of general taxpayers. Read more on tax benefits for senior citizens (External website that opens in a new window).