Benefits to Senior Citizen and Super Citizen

Definitions as per Income Tax Law [00:11]:
- Senior Citizen: An individual who attains the age of 60 years or above at any time up to the last day of the respective financial year.
- Super Senior Citizen: An individual who attains the age of 80 years or above at any time up to the last day of the respective financial year.

Exemptions

PAN-Aadhaar Linking [00:37]: A super senior citizen (age 80 years or above) is exempt from linking PAN with Aadhaar as per CBDT Notification No. 37/2017 dated May 11, 2017.
Filing Income Tax Return (ITR) [00:44]:
- A senior citizen aged 75 years or above is exempt from filing ITR under Section 194P of the Income Tax Act, effective from Assessment Year 2022-23.
- Conditions for Exemption from ITR Filing [01:36]:
  - Must be 75 years or above.
  - Must be a resident in India in the previous year.
  - Income source must be pension and interest income only.
  - Interest must be accrued or earned only from the same specified bank where the pension is received.
  - The bank should be notified by the Central Government as a “specified bank.”
  - The senior citizen must submit a declaration to the specified bank.
  - The bank will be responsible for computing total income, deducting TDS (if applicable) after considering Chapter VIA deductions and Section 87A rebate.
  - Note: If choosing the new tax regime, Chapter VIA deductions are not allowed [01:30].
  - If interest income during the year is less than ₹1 lakh, the bank will not deduct any tax from such interest income [02:32].
- Contents of Declaration to Bank [02:38]: Senior citizens must declare total income, deductions available under Section 80C to 80U, rebate under Section 87A, and confirm having only pension and interest income.

Higher Tax Exemption Limit and Tax Rates (Old Tax Regime)

Basic Exemption Limit [03:07]:
- Normal Individuals: ₹2.5 lakhs.
- Senior Citizens (60-80 years): ₹3 lakhs.
- Super Senior Citizens (80+ years): ₹5 lakhs.
Tax Rates (Old Tax Regime) [03:39]:
- Senior Citizens (60-80 years) [03:54]:
  - Up to ₹3 lakhs: No tax liability.
  - ₹3,00,001 to ₹5 lakhs: No tax after claiming Section 87A rebate.
  - ₹5,00,001 to ₹10 lakhs: ₹10,000 + 20% of income exceeding ₹5 lakhs.
  - Above ₹10 lakhs: ₹1,10,000 + 30% of income exceeding ₹10 lakhs.
- Super Senior Citizens (80+ years) [04:30]:
  - Up to ₹5 lakhs: No tax liability.
  - ₹5,00,001 to ₹10 lakhs: 20% of income exceeding ₹5 lakhs.
  - Above ₹10 lakhs: ₹1 lakh + 30% of income exceeding ₹10 lakhs.
New Tax Regime (Optional) [04:52]:
- FY 2024-25 (AY 2025-26) [05:00]:
  - Up to ₹3 lakhs: No tax.
  - ₹3 lakhs to ₹7 lakhs: 5%.
  - ₹7 lakhs to ₹10 lakhs: 10%.
  - ₹10 lakhs to ₹12 lakhs: 15%.
  - ₹12 lakhs to ₹15 lakhs: 20%.
  - Above ₹15 lakhs: 30%.
  - Rebate: Up to ₹20,000 if total income does not exceed ₹7 lakhs [05:21].
- FY 2025-26 (AY 2026-27) [05:42]:
  - Up to ₹4 lakhs: No tax.
  - ₹4 lakhs to ₹8 lakhs: 5%.
  - ₹8 lakhs to ₹12 lakhs: 10%.
  - ₹12 lakhs to ₹16 lakhs: 15%.
  - ₹16 lakhs to ₹20 lakhs: 20%.
  - ₹20 lakhs to ₹24 lakhs: 25%.
  - Above ₹24 lakhs: 30%.
  - Rebate: Up to ₹60,000 if total income does not exceed ₹12 lakhs [06:03].
- Note: Surcharge and cess are applicable over and above tax rates in both regimes. Rebate under Section 87A is not available for income taxed at special rates (e.g., capital gains under Section 112A) [05:35, 06:24].

Additional Deductions

Capital Gains Exemption (Reverse Mortgage Scheme) [06:32]: Senior citizens are eligible for exemption from capital gains tax on the transfer of residential house property through a reverse mortgage scheme notified by the central government. Income under other heads is also exempt.
NPS Vatsalya Scheme (Section 80CCD(1B)) [07:02]: Senior citizens can contribute for minor grandchildren and claim a deduction of up to ₹50,000 in the old tax regime. Once the grandchild turns 18, the account converts to a standard NPS account.
Health Insurance Premium/Medical Expenses (Section 80D) [07:36]:
- Deduction for health insurance premium for senior citizens is allowed up to ₹50,000 (against ₹25,000 for other individuals).
- Deduction up to ₹50,000 for medical expenses incurred on a senior citizen’s health if no health insurance premium is paid.
- Payment must be made by any mode other than cash.
Medical Treatment for Specified Disease/Ailment (Section 80DDB) [08:06]:
- Deduction for medical treatment of a specified disease for self or dependent relatives is ₹40,000.
- If expenses are incurred for a dependent senior citizen, the deduction limit is ₹1 lakh.
Interest Income from Bank/Post Office (Section 80TTB) [08:38]:
- In the old tax regime, senior citizens can claim a deduction up to ₹50,000 on interest income from savings bank accounts, bank deposits, post office deposits, or cooperative bank deposits (against ₹10,000 for others under Section 80TTA for savings bank interest only).
- As per Finance Act, 2025, if interest income earned by a senior citizen during the year is less than ₹1 lakh, the payer bank or post office will not deduct any tax [09:17].
Standard Deduction from Pension Income (Section 16) [09:30]:
- Old Tax Regime: Up to ₹50,000.
- New Tax Regime: Up to ₹75,000.

Procedural Benefits

Manual ITR Filing (Super Senior Citizens) [10:05]: Super senior citizens (80+ years) can file their ITR manually (paper mode) if their total income is more than ₹5 lakhs or if they have a refund. ITR-1 or ITR-4 can be filed. E-filing is not mandatory for them, though they can opt for it.
Exemption from Advance Tax [10:40]: Senior citizens are exempt from paying advance tax, provided they do not have any income under the head “Profits and Gains of Business or Profession.”
Form 15H Submission [10:55]: Senior citizens can submit Form 15H to the deductor for non-deduction of TDS on certain incomes if the tax on their estimated total income for a financial year is nil.

For more information, you can visit the Income Tax Department’s website at www.incometax.gov.in or contact their helpline numbers.