Senior Citizen Income Tax Benfits for AY 2019-20

By | April 20, 2019
(Last Updated On: April 20, 2019)

Certain Income Tax Benefits are given to Senior citiens and super senior citizens under income tax Act.

Who is Senior Citizen under Income Tax : An Indian resident who is of the age 60 and above but below 80 during the respective year is categorized as a senior citizen.

Who is Super Senior Citizen under Income Tax :An Individual Residents of 80 years or above at any time in Financial Year are termed very senior citizens or super senior citizens.

Criteria for senior citizenCriteria for very senior citizen
Must be of the age of 60 years or above but less than 80 year at any time during the respective year.Must be of the age of 80 years or above at any time during the respective year.
Must be residentMust be resident

Higher Exemption limit:

The exemption limit for non-senior citizen is Rs 2.5 lakh. 

A senior citizen is granted a higher exemption limit compared to non-senior citizens. The exemption limit for the financial year 2018-19 & 2019-20 available to a resident senior citizen is Rs 3 lakh.

A very senior citizen is granted a higher exemption limit compared to others. The exemption limit for the financial year 2018-19 & 2019-20 available to a resident Super senior citizen is Rs 5 lakh.

Senior citizenVery senior citizen
A senior citizen is granted a higher exemption limit compared to non-senior citizens. The exemption limit for the financial year 2019-20 available to a resident senior citizen is Rs. 3,00,000. The exemption limit for non-senior citizen is Rs. 2,50,000. Thus, it can be observed that an additional benefit of Rs. 50,000 in the form of higher exemption limit is available to a resident senior citizen as compared to normal tax payers.A very senior citizen is granted a higher exemption limit compared to others. The exemption limit for the financial year 2019-20 available to a resident very senior citizen is Rs. 5,00,000. The exemption limit for non-senior citizen is Rs. 2,50,000. Thus, it can be observed that an additional benefit of Rs. 2,50,000 in the form of higher exemption limit is available to a resident very senior citizen as compared to normal tax payers.

Paper Income Tax return filing:

However From AY 2019-20 (FY 2018-19 ) Income-tax Law grants relaxation from e-filing to Super senior citizen. A Super senior citizen filing his return of income in Form ITR 1/4 has the option to file his return of income in paper mode or electronically.

From AY 2019-20 (FY 2018-19 ) All Other Assessees are required to file income return electronically only.

Advance Tax exemption:

As per section 208, every person whose estimated tax liability for the year is Rs 10,000 or more, shall pay his tax in advance, in the form of “advance tax”.

However, section 207 gives relief from payment of advance tax to a resident senior citizen. A senior citizen not having any income from business or profession, is not liable to pay advance tax.

Tax deduction benefits

From AY 2019-20 ( FY 2018-19) senior citizen can claim Deduction under Section 80TTB of the Income Tax Act for any income from fixed deposits or saving deposits in banks , co-operative banks  or post office upto Rs 50000/-.

Note : under Section 194A of the I-T Act, no tax is deducted from the payment of interest of up to Rs 50,000 for senior citizens

Expenditure on Medical Treatment

section 80D​DB of the Income-tax Law gives various provisions relating to tax benefits available on account of expenditure on medical treatment of specified diseases. There are special benefits under section 80DDB ​available to a senior citizen.

​​​​​​​ Section 80D of the Income-tax Law gives various provisions relating to tax benefits available on account of payment of medical insurance premium and other related items. There are special benefits under section 80D​ available to a senior citizen.

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